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This is a homework question from chapter 6 of the textbook. Public Finance, and the American Economy 2nd edition by Neil Bruce. (9780321078155) Suppose 80%
This is a homework question from chapter 6 of the textbook. "Public Finance, and the American Economy" 2nd edition by Neil Bruce. (9780321078155)
Suppose 80% of the $8 billion construction cost of the new urban transit system in Los Angeles is paid by the federal government. From the perspective of the state of California, what is the economic cost of construction? What is this cost from the perspective of the federal government? (California accounts for about 10% of the nation's income.)
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