The Most Obvious Impact on a Household Who Participates in Transfer

Multiple Choice

The most obvious impact on a household who participates in transfer program is the increase in non-labor income,which can _____________.

A) Tighten budget constraints and induce substitution effects
B) Relax budget constraints and induce substitution effects
C) Tighten budget constraints and induce income effects
D) Relax budget constraints and induce income effects