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Why Do Some Economists Prefer Government Planning and Financing of Big-Push

Question 70

Multiple Choice

Why do some economists prefer government planning and financing of big-push development to private sector development? Because


A) private firms have a longer planning horizon than governments
B) governments have a longer planning horizon than private firms
C) private firms cannot collect taxes
D) it takes less initial start-up capital than any alternative development strategy
E) private firms create markets and government planning does not require market creation

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