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Which of the Following Is a Potential Drawback of an Expansion

Question 157

Multiple Choice

Which of the following is a potential drawback of an expansion of government spending projects during a recession?


A) Spending projects are easily reversed once the economy has recovered.
B) Government spending projects are not included in the calculation of GDP.
C) Those benefiting from spending projects will lobby for a continuation of these projects long after the economy has recovered.
D) Government spending projects will not encourage rent-seeking activity.

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