Question

In: Economics

A state is spending $30 million on disability programs in schools and the federal government promises...

A state is spending $30 million on disability programs in schools and the federal government promises to give that state $25 million to spend on disability programs in schools. Explain the type of grant being promised to the state and how it will affect state spending on disability programs in schools.

Solutions

Expert Solution

This is a type of conditional or categorical grant.

This is because this type of grant will be given by Fed to state for a specific purpose. This money cannot be used for any other purpose.

This will increase state spending on disability programs in school and will thus have a positive impact on soceities and states.

Rahul Sunny answered 1 year ago
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