Wagner's law of increasing state activity postulated that government expenditures would grow at a faster rate than the output of goods and services in industrialized countries. Wagner gave three reasons for his theory. Which of the following is not one of Wagner's reasons?
A) as the population increased, the productivity of each worker would decline
B) as national incomes increased, more money would be allocated to welfare expenditures
C) government would be needed to finance large capital projects
D) more money would be spent on law and order because of greater urbanization
Correct Answer:
Verified
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