Federal subsidies to higher education have the effect of
A) increasing the demand for higher education
B) increasing the supply of higher education
C) decreasing the demand for higher education
D) decreasing the supply of higher education

Question

Quizplus · Accepted Answer

Federal subsidies to higher education provide financial aid to students, making it more affordable for them to attend college or university. This, in turn, increases the demand for higher education as more students are able to afford to attend. Therefore, choice A is the best answer.

Federal Subsidies to Higher Education Have the Effect of