Which Statement Regarding Tax-Subsidized Saving for Retirement Is TRUE

Which statement regarding tax-subsidized saving for retirement is TRUE?

A) Tax subsidies for saving unambiguously increase saving.
B) The income effect of tax subsidies for saving induces individuals to save more.
C) The substitution effect of tax subsidies for saving induces individuals to save less.
D) The income effect of tax subsidies for saving induces individuals to save less.

Correct Answer:

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