e state of M is considering 2 ways of funding local roads, matching grants and block grants (a fixed amount of grant funding to the towns no matter how they spend it). For the matching grant, M will spend 1$ for every 2$ spend by each town. a. What is the price of an additional dollar of spending by a town on roads? b. Given what we have talked about in class, which is likely to lead to higher levels of local spending on roads? Justify your answer. 3. (Chapter 11.) True or false and explain why. The signaling model of education suggests that the government should invest a lot in supporting public education