Matching grants typically encourage recipient jurisdictions to spend more because they receive additional funds from the government for meeting certain spending thresholds, leading to an increase in government expenditures more than what would occur with nonmatching grants of an equal amount.

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Matching Grants

Question 35

Multiple Choice

Matching grants:

A) will not increase government spending in recipient jurisdictions.
B) increase government expenditures in recipient jurisdictions more than nonmatching grants of an equal amount.
C) increase government expenditures in recipient jurisdictions less than nonmatching grants of an equal amount.
D) increase tax rates in recipient jurisdictions.

Correct Answer: