Matching Grants Can Create a Moral Hazard Because ______

Matching grants can create a moral hazard because ______.

A) the states will only receive a fixed amount of money and must find their own dollars if they want to expand programs
B) the people responsible for managing the program will be tempted to redirect to favored activities instead of the specified activities
C) the federal government must raise taxes to pay for the long-term commitments embodied in these programs
D) people may behave differently or take more risks because they do not have to pay all of the costs of their actions