Spencer and Brander’s model highlights the conventional assumption tha

Spencer and Brander’s model highlights the conventional assumption that

A) government involvement in business or in the economy tends to fail.
B) government subsidies tend to waste taxpayer’s money.
C) government subsidies cannot create a successfully competing export.
D) government tends to distort when it displaces Adam Smith’s Invisible Hand.
E) government subsidies can produce profits that exceed the subsidy’s value.

ANSWER

E