When the Government Reduces My Income Tax by $0

Multiple Choice

When the government reduces my income tax by $0.30 for every $1.00 that I contribute to a charity, the government is effectively

A) alleviating the negative externalities that are associated with charitable giving.
B) imposing a negative externality on those who do not pay income taxes.
C) encouraging a private solution to a positive-externality problem.
D) encouraging a private solution to a negative-externality problem.