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Question: Suppose that your state receives a nonmatching grant from the federal government that is targeted to education spending. What does economic theory suggest would be the impact of this grant on education spending and on private consumption in your state? What does the fly-paper effect suggest will happen to education spending in your state relative to an equivalent increase in private income?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92309058

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