The estimated average rate of return on federal investment, while uncertain, is thought to be between: a. 0 percent (no return) to 10 percent. b. -5 percent (negative due to state and local substitution effects) to 0 percent (no return). c. 6 percent to 12 percent --a range equivalent to the return on private equities. d. -5 percent (negative due to crowding-out) to 5 percent.

Q: Ans: (a) 5.20 Gy (b) 5.04 Gy

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