As more politically directed spending leads to more rent-seeking activity,
A) the spending will increase GDP, but only if it is directed toward productive activity.
B) the spending will decrease GDP, but only if it is directed toward unproductive activity.
C) resources will be channeled toward unproductive activity and away from productive activity.
D) resources will be channeled toward productive activity and away from unproductive activity.
Correct Answer:
Verified
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