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    Microeconomics
  4. Exam
    Exam 8: Wealth and Substitution Effects in Labor and Capital Markets
  5. Question
    For Decreases in Wage Taxes, Substitution Effects Put Negative Pressure
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For Decreases in Wage Taxes, Substitution Effects Put Negative Pressure

Question 1

Question 1

True/False

For decreases in wage taxes, substitution effects put negative pressure on tax revenues while wealth effects put positive pressure on tax revenues.

Correct Answer:

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