Which of the following best describes the impact of government transfers on human capital investment decisions?
A) In-kind transfers reduce the incentive to invest in human capital,while cash transfers increase it
B) Some transfers reduce the incentive to invest in human capital because higher wages are accompanied by loss of benefits; other transfers increase investment by reducing the cost of investing
C) Transfers have a negative impact on short-run investment decisions but no impact on long-run investment decisions
D) Transfers have no impact on human capital investment decisions
Correct Answer:
Verified
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