If the federal government gives a grant to a state to spend only on education an
ID: 2617630 • Letter: I
Question
If the federal government gives a grant to a state to spend only on education and total state education spending does not increase at all, which of the following is true empirically? Assume that education is a normal good. 10.If the federal government gives a grant to a state to spend only on education and total state education spending does not increase at all, which of the following is true empirically? Assume that education is a normal good. a. There is a flypaper effect. b. There is NO substitution effect. c. There is NO income effect. d. All of the above are correct e. Both b and c are correct.Explanation / Answer
Answer for a state to spend only with regards to education and total sales education spending doesnot increase = e. Both b and c are correct
that is b. There is NO substitution effect and c. There is NO income effect