Consider the case where the federal government is willing to spend $X in the form of a
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Consider the case where the federal government is willing to spend $X in the form of a grant to provinces. Using diagrams such as those in Figures 8.2 and 8.4, show that with normally shaped indifference curves the increase in welfare will be greater if a nonmatching grant, rather than a matching grant, is used.
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Related Book For
Public Finance In Canada
ISBN: 9781259030772
5th Canadian Edition
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
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