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.