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Compared with a Low Benefit Reduction Rate, a Relatively High

Question 226

Multiple Choice

Compared with a low benefit reduction rate, a relatively high benefit reduction rate in a cash assistance program


A) reduces the incentive to work.
B) increases the incentive to work.
C) does not affect the incentive to work.
D) will reduce the incentive to work through the substitution effect but will increase the incentive to work through the income effect.

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