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Please see attached. Suppose the following model of government efficiency, Utility function over consumption of private goods (C) and public goods (G) is such that

Please see attached.

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Suppose the following model of government efficiency, Utility function over consumption of private goods (C) and public goods (G) is such that this country desires to have 2 units of consumption good per each unit of public good. Exogenous Income: Y = 20 Lump-sum tax: T Government efciency: q (This measures the number of public goods that can be produced from one unit of private consumption good) If the optimal lump-sum tax, T*, that maximizes the representative consumer's utility and balance the government budget, is 10, then what is the value government efficiency, q? 0 A. 0.5 O B. 1/3 0 c. 0.2 O D. 2/3 0 E. none of the above

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