The Effect of the Earned Income Tax Credit on the Workers

Multiple Choice

The effect of the earned income tax credit on the workers is to:

A) make home ownership possible.
B) supplement the earnings of all workers by providing a subsidy for working.
C) temporarily assist pregnant women and families with children.
D) reduce the implicit marginal tax rate that is associated with the reduction in other government benefits that occurs when the pay of a low-income worker increases.