17. 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 nonsecular expenditures. How would the university’s welfare differ if the gift came without the secular-use restriction?

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Nonsecular activities ($M) 16 14 12 10 8 6 4 2 Secular activities ($M) 0 2 4 6 8 10 12 14 16 18