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3. If the Baumol hypothesis is correct concerning local government finances, and if the demand for local services is inelastic, then we are in trouble

3. "If the Baumol hypothesis is correct concerning local government finances, and if the demand for local services is inelastic, then we are in trouble - eventually, spending for education, police and fire protection, and sanitation will require half our incomes." Evaluate this concern. What changes could occur to prevent this from happening

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