Question: Difference between excise subsidy and equal size cash grant is that: A: the cash grant involves an income and substitution effect, while the excise subsidy

Difference between excise subsidy and equal size cash grant is that:

A: the cash grant involves an income and substitution effect,

while the excise subsidy involves a substitution effect only.

B: the excise subsidy involves a substitution effect only, while

the cash grant involves an income effect only.

C: the cash grant involves an income and substitution effect,

while the excise subsidy involves an income effect only.

D: the excise subsidy involves an income and substitution effect,

while the cash grant involves an income effect only.

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