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Recent Legislation Provides Parents with a Substantial Reduction in Their

Question 97

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Recent legislation provides parents with a substantial reduction in their personal income tax liability for each child that they have. The economic way of thinking indicates that legislation of this type will


A) make it more costly for parents to provide for their children.
B) reduce the value of children to their parents and, therefore, lead to a reduction in the birth rate.
C) reduce the after-tax cost of raising children and, therefore, increase the birth rate.
D) exert no impact on either the cost of raising children or the birth rate since having children is a not an economic activity.

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