Question: Suppose that there is an urgent need for new school buildings and teachers that emerged after hurricane Harvey in Houston, Texas. Answer the following questions about grants.
a. Explain why a block grant, in comparison with a matching grant, would result in less consumption education services (e.g., school buildings and teachers) but more of other goods according to your textbook.
b. Explain how a further impact via the spending or fiscal multiplier will be achieved and whether it depends on the type of grant (i.e., block vs. matching grants)?