Multiple Choice

-Refer to the information above.Suppose that a 10% reduction in spending for all public goods is mandated.This means that
A) two of the three public goods will be above their optimal levels.
B) there will be less government spending which is always socially beneficial.
C) two of the three public goods will be below their optimal levels.
D) all three public goods will be at their optimal levels.
E) all three public goods will be above their optimal levels.
Correct Answer:
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