Question: Prior to 1979 the food stamp program required families to
Prior to 1979, the food stamp program required families to pay a certain amount for food stamps. Suppose a family can receive $ 150 in food stamps for a payment of $ 50; no other options are offered. How would this policy affect the budget line? Compared with an outright gift of $ 100 in food stamps, which is the way the program now works, would this policy lead to more, less or the same food consumption?
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