Which of the following statements concerning the work incentive (or disincentive) effects under a wage subsidy program and under a negative income tax program is true?
A) The wage subsidy program has a greater positive effect on the incentive to work.
B) Both these programs have the same effects in this regard.
C) The negative income tax program is neutral in regards to these effects.
D) The negative income tax program has a greater positive effect on the incentive to work.
E) The wage subsidy program is neutral in regards to these effects.
Correct Answer:
Verified
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