Matching grants have ___________; block grants have ___________.

Question

Quizplus · Accepted Answer

Matching grants have both income and substitution effects because they require the recipient to match the funding provided by the grant, which increases the recipient's total budget and can lead to an increase in the quantity and quality of services provided. Block grants, on the other hand, have only income effects because they provide a fixed amount of funding to the recipient, regardless of the recipient's budget, and therefore may not incentivize the recipient to increase the quantity or quality of services provided.

Matching Grants Have ___________; Block Grants Have ___________

Matching Grants Have _; Block Grants Have _