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4. The federal government wants to support education but must not support religion. To this end, it gives the University of Notre Dame $2 million

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4. 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 (that is, not overtly religious) purposes only. The graph below shows Notre Dame's pre-federal-gift budget constraint and utility. Reproduce the above diagram. On your diagram, show how the federal grant changes Notre Dame's budget constraint. Religious activities (millions of dollars) 12 6

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