9. An uncapped dollar-for-dollar federal matching grant may be mor efficient than a federal block grant if a there are large horizontal fiscal inequalities across local governments b there are large vertical fiscal inequalities between levels of government c the grant is applied to spending that has positive spillovers across jurisdictions d the grant is applied to spending that has negative spillovers across jurisdictions

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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9.
An uncapped dollar-for-dollar federal matching grant may be more
efficient than a federal block grant if
there are large horizontal fiscal inequalities across local governments
b there are large vertical fiscal inequalities between levels of government
e the grant is applied to spending that has positive spillovers across jurisdictions
d the grant is applied to spending that has negative spillovers across jurisdictions
Transcribed Image Text:9. An uncapped dollar-for-dollar federal matching grant may be more efficient than a federal block grant if there are large horizontal fiscal inequalities across local governments b there are large vertical fiscal inequalities between levels of government e the grant is applied to spending that has positive spillovers across jurisdictions d the grant is applied to spending that has negative spillovers across jurisdictions
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