What are the arguments for and against federal government grants to states?
Supporters of large grants see state governments as more flexible and closer to the people. They also view the states as "laboratories of democracy," where creative solutions to make government more efficient can be developed. Critics of grant programs argue that the history of state governments gives little reason to see them as efficient providers of public services. These people worry that minimum national standards in welfare and health care might be sacrificed as states husband their limited financial resources.
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The different effects of fiscal and monetary policy in an open economy with mobile capital hinges on their different effect on
a. price levels. b. interest rates. c. the money supply. d. real GDP.
Other things the same, an increase in domestic prices raises the real exchange rate
a. True b. False Indicate whether the statement is true or false