The federal government wants to support education but must not support religion. To this end, it gives the University of Notre Dame $2 million with the stipulation that this money be used for secular purposes only. The accompanying graph shows Notre Dame€™s pre-federal-gift budget constraint and best attainable indifference curve over secular and non-secular expenditures. How would the university€™s welfare differ if the gift came without the secular- userestriction?

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Nonsecular activities SM) 16 14 Secular activities SM 0 26 8 10 2 14 16 18