Matching Grants Can Create a Moral Hazard Because ______

question 66

Multiple Choice

Matching grants can create a moral hazard because ______.

• A) the states will only receive a fixed amount of money and must find their own dollars if they want to expand programs
• B) the people responsible for managing the program will be tempted to redirect to favored activities instead of the specified activities
• C) the federal government must raise taxes to pay for the long-term commitments embodied in these programs
• D) people may behave differently or take more risks because they do not have to pay all of the costs of their actions

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Definitions:

Discount Series

A sequence of discounts applied one after the other, often used to determine the final price after multiple discounts are applied.

Trade Discount

A reduction in the price of goods or services offered by a seller to a buyer in the business-to-business market.

Discount Series

A sequence of discounts applied one after the other to reduce a product's price or to calculate the present value of a stream of future payments.

Invoice Notation

Symbols or codes used on an invoice to provide specific information about the transaction or goods involved.