Which of the Following Is True of a Change in Dividend

Multiple Choice

Which of the following is true of a change in dividend payments?

A) There is no substitution effect because a change in dividend payments does not change the trade-off between work and leisure.
B) There is no income effect because a change in dividend payments does not change the trade-off between work and leisure.
C) There is no substitution effect because a change in dividend payments does not change a household's permanent income.
D) There is no income effect because a change in dividend payments does not change a household's permanent income.