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GMAT Critical Reasoning (CR) | Re: RATT RACE: Regional population expansion

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now, after rereading the passage, I now fully understand.
The argument talks about the business of government services. (municipal refers to government body) The plan is all about how the government deal with the strain on supplying services to growing population. A talks about why the plan is likely to fail because the government will not find funds to cover immediate costs.

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