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1 Nov 2018

Federal categorical grant program to state governments is intended primairly:

A. To take advantage of the low collection costs of federal taxes in comparision with the collection cost of state taxes.

B. To redistribute fiscal affluence from high capacity states to low capacity states.

C. To provide additional support to well-established state programs.

D. To induce state governments to behave in a fashion other than the way they would have behaved without the aid.

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1 Nov 2018

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