Poly Sci

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Federal Reserve Banks

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Control supply of money: uses discount rate, stimulate economy, decresses interest rate, increases supply of money-decreases inflation rate

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Federal Reserve and the government

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prevents runs on banks by loaning money. Does buisness with federal reserve

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Control Money Supply

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Discount Rate-stimulates economy decreases interest rate.
increases supply of money, dcreases inflation rate

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Source of Income for government

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Mostly taxes

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Income Tax

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inflation proof-thrives on it.
mostly federal

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sales tax

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bad tax. retail only. States mostly set the tax.

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property tax

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mostly local. Self-defeating-taxes hit harder by inflation
retaxed each year on same item
reasseses property every year to meet new prize changes

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excise tax

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luxury/sin tax-alcohol and tobacco
regressive (flat) tax

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the power to appropriate funds for the military is held by the

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congress

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categorical grants

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many strings, telling you what to use the money for

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block grants/funds

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grant with certain purposes and less strings attach to it

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matching requirements/grants

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you match the goverment on money but it sends them further into debt

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Budgetary cycle

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agency request, assembled by the Office of Managment to Budget, legistlative approval, treasury authorization

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Real Process of Budget making

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incrementalism-easy, predictable, wastes money

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Bureaucracy

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An organization based on the priciple of specialization, organization with a lot of little compartments

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5 principles of rational org

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Specilization, professionalism, written records, hierarchy of role relationships, neutral competence

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Specialization

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geographic, client group, subject matter, task

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professionalism

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trained to do job, written job description, tied by wages

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written records

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files everything niqqa

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neutral competence

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no politics, treated all the same

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the three types of federal grants presentluy being administered area ll the following except

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revenue sharing

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funds appropriated for specific purposes area llocated by formula and subject to detailed federal conditions are

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categorical

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the constitution delegates the authority to declate the legal state of war to the

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congress

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the office which prepares the president's annual budget is the

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office of management and budget

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the control of the money supply is acheived through

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monetary policy

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the federal government get most of its funds from

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personal income taxes

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the debt is the difference between the

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total of our defecits minus our surpluses over the years

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the first step in preparing the federal budget is

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estimating agency needs

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teh idea that prices income and economic stablity are primarily a function of growth in the money supply is called

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monetarism

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monetary policy is made by the

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federal reserve system

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the economic policy of FDR's new deal was based on

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keynesian economics

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Nato is primarily a

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military alliance`

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most responsilitiy for the formation of foregin policy is held by the

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executive branch

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the permanany members of the un security counsel included all the following except

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JAPAN

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the power to appropriate funds for the military is held by the

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congress

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maintaining the ability to threaten massive reataliation on any nations that attacked us is called a strategy of

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Mutual Assured Destruction or MAD

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political parties play a major role in shaping foreign and defense policy T or F

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false

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party of the budget outlays are called uncontrollable because they involve legal commitment and payments to individuals that are guaranteed by formula written law T or F

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True

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The fourth branch of government is a name often given to

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the buereaucracy

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since ww2 executive agreements have

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accounted for many of the understandings reached between teh united states and other nations

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the us governmetn finances its debt by

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selling bonds to banks investment companies, and private individuals

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all large private and governmental organization are run by bureaucrats

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true

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two basic pricipals of the theory of BUREAUCRACY are

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hierarchy and specialization

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to reduce waste in government one is also likely to have to increase

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bureacratic red tape

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which of the following is NOT typical bureautracies

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great innovation

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the major source of municipal tax revenues comes from

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property tax

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the importance of the national security advisor diminsished after the eisenhower admin

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false

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federal grants in the use of which local officails had almost complete discretion are called

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revenue-sharing funds

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when production falls and spendng decreaes, this is an example of economic

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recession

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in the united nations security council

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the five permanant memebers have veto power `

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most studies have shown taht the best predictor of how much a government unit will spend on a function is

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the previous year's budget

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bureaucracies are divided into subunits based on all teh following ecept

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religion

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the federal reserve system is legally responsible directly to

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no specific superior

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teh greatest succecces of the united nations have been in

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operating technical programs

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teh branch of the UN that hs all but completed its original task is the

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trusteeship council

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it is the job of teh world police force INTEROL to bring castes before the world court ToF

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false

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the theory of capitalism was first propeses by

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adam smith

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in spite of our claim to be a capitalist country, government involvemnt in support of business has occured since

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the first congress

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John Maynard Keynes proposed that a country can get our of a depression by having the government

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use its own buying power to readjust the supply and demand

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keynes suggested that to the right recess a government should

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lover taxes and raise spending

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the main signinifcace of our intelligence comminty to the conduyct of the us foregin policy is

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the information they collect from both secret and publicy available resources

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only presidents can declare war

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false

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the us today is fully prepared to handle and conventional confluct that might break out as well as maintaining a formidable nuclear force

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false

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all memeber nations of the UN are represented in the

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General Assembly

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the head of the UN secretariat is usually given to some prominet political figure who had shown him/her self to be a great world leader

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false

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the role of government in laissez-faire capitalism is

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act as a neutral arbiter between business and labor

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to a capitalist teh price of anything should be determined by

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its supply and demand

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the US economy in the 50's and 60's was in fact propped up by

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all of the above

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the federal reserve system can prevent bank panics by

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loaning money to member banks

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the biggest user of the income tax as revenue is

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national government

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all these taxes are regressive except

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old income tax

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buying municipal bonds can actually lower the taxes one owes to the federal government

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true

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the steps of our government goes through each year to approve money for federal programs is called the budgerary cycle

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true

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the 5 principle of a rational organization include all of the following except

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hierarchy of needs

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monetary policy

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controls economy by supply of money

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inflation

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when demand exceeds supply price is going up

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problem with keynes

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war-wasteful its good for business
foreign aid-#1 thing hurting economy

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great depression

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government helped the economy by spending it our of depression

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john maynard keynes model

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government during peace should do for the economy what it does during war-time

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teddy roosevelt

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start of buisniness regulations
1. pure food and drug
2. Child Labor

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government involvement

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government has no role in captialism

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N.U.T.S

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Nuclear Utilization in Tactical Situations

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Declaring War

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only by congress

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propoganda

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consciously political biased info

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foreign aid

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type of indirect policy

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indirect diplomacy

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things countries do to eachother to establish a mood state visit foregin aid economic military

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executive agreements

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gentlemans agreement btwn 2 countries
less formal than a treaty
stays law till president needs it

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treaty

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Formal Diplomacy only congress can approve them

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foreign policy-sec. of Defense

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policy rivalry btwn state and defense dept

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foreign policy sec of state

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specialized in foreign policy
power depends on relationship with president

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House
Foreign Policy

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All Bills start here. $$$$

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Senate- Foreign Policy

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approves treaties approves diplomats
delcares war without house consent

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President and Foregin Policy

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negotiates treaties appoints diplomats

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The federal government gets most of its funds from

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personal income taxes

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The Control of the money supply is achieved through

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monetary policy

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Funds approriated for specific purposes which are allocated by formula and subject to detailed federal conditons are

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categorical

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The three types of federal grants presently being administered are all of the following but

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revenue sharing