Consider the allocation of a nation's resources between additional public- sector spending versus additional private spending.James Buchanan argued that
A) compared to private spending,public spending leads to more sustained long- run economic growth.
B) given the current size of government,the value of the marginal dollar spent by government is less than the value of that dollar left in the hands of households or firms.
C) the marginal utility of an additional dollar's worth of spending on public goods is higher than an additional dollar's worth of spending on private goods.
D) public sector spending is always subject to corruption and is therefore not as valuable as private spending.
E) compared to public spending,private spending leads to more sustained long- run economic growth.
Correct Answer:
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