Some policy analysts have shown that states and cities that enact relatively high taxes to pay for extensive social programs ________.
A) are often successful at addressing social problems that are not effectively managed at the federal level
B) force surrounding states and cities to adopt similar policies as a result of coordination problems
C) are most successful at attracting federal block grants
D) lose wealthy residents and businesses to lower-tax states and cities, leaving social programs underfunded
E) usually do so through institutions of direct democracy, such as the ballot initiative
Correct Answer:
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