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3. A city has a budget of $1million that it can allocate to the local schools or to other services. (a) Graphically depict the city's
3. A city has a budget of $1million that it can allocate to the local schools or to other services. (a) Graphically depict the city's budget constraint for schools and other services. (b) The state offers the city a capped matching grant where it will provide $1 for every $3 the city spends on education. It's \"capped\" because the largest matching grant the state will provide is $100k. i. Graphically depict the new budget constraint. ii. Suppose the city spends $4001: on schools and $600k on other services before the matching grant. Explain how the capped matching grant would affect this city's spending relative to a conditional block grant of $100k
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