Which statement is an example of the concept of competitive federalism?
A) States vie with each other to keep their tax burdens low in order to retain and attract businesses and the affluent, which makes them reluctant to raise taxes to enhance Medicaid coverage.
B) Variations in state commitment to a formula grant program may lead to stark differences in levels of spending and number of enrollees.
C) State fiscal capacity varies causing less affluent jurisdictions to be at a disadvantage unless the federal government re-calibrates the funding formula.
D) The state of Oklahoma returned a $54 million innovator grant that the state had won to expedite the creation of an insurance exchange under the Affordable Care Act.
Correct Answer:
Verified
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