Which of the following statements about the income effect of an income tax rate increase is true?
A) The income effect is theoretically stronger for low-income taxpayers than for high-income taxpayers.
B) The income effect is theoretically stronger for a family's secondary wage earner than for the family's primary wage earner.
C) The income effect motivates individuals to find ways to increase their before-tax income.
D) Both A. and C. are true.
E) are true.
Correct Answer:
Verified
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