What is price of an additional dollar of local spending in, Ask an Expert

Economics

Q. State of Minnegan is considering two alternative methods of funding local road construction, matching grants and block grants. In case of matching grant, Minnegan will spend $1 for every $1 spent by localities.

a. What is price of an additional dollar of local spending in each case?

b. Which of two methods do you think would lead to higher levels of local spending on roads? Explain your answer.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9307621

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