In the context of public expenditure, Wagner's Law suggests that:
A. Only private expenditure increases with development
B. Public expenditure declines with economic development
C. Public expenditure tends to increase as the economy develops
D. Public expenditure is independent of economic growth
Answer: Option C
Solution (By JKSSB Mock Tests)
Wagner's Law posits that as an economy develops, the share of public expenditure in national income tends to rise due to increased demand for public goods and social services.
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