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What is fungibility hypothesis of intergovernmental grants

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Question - What is the fungibility hypothesis of intergovernmental grants?

a. Recipients of a non-matching grant will spend the money on the good specified by the grant

b. Recipients of a non-matching grant will spend the money on the good specified by the grant and other goods

c. Recipients of an intergovernmental grant are fungible

d. Lump-sum grants will cause inefficiencies in fiscal federalism because of the flypaper effect

Reference no: EM132653132

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