Define given circumstances by community indifference curves

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Question: Illustrate the following circumstances using community indifference curves and the local government budget constraint:

a. An unconditional grant increases both the quantity of public goods purchased and local taxes.

b. A matching grant leaves provision of the public good unchanged.

c. A closed-ended matching grant has the same impact as a conditional nonmatching grant.

d. A closed-ended matching grant leaves local taxes unchanged.

Reference no: EM131500331

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