Suppose the federal government promises to pay a state $0.50 for every $1 the state spends on health insurance for uninsured children.That transfer can best be characterized as:

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This transfer is a matching grant because the federal government is offering to match a portion of the state's spending on health insurance for uninsured children. Specifically, for every $1 the state spends, the federal government will contribute $0.50, leading to a total of $1.50 of funding.

Suppose the Federal Government Promises to Pay a State $0