Suppose a working mother is currently ineligible for any government assistance

Suppose a working mother is currently ineligible for any government assistance

48. Suppose a working mother is currently ineligible for any government assistance. If she were then to become eligible for an income maintenance program that incorporates both a basic benefit and a positive benefit-reduction rate:

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a. both the income and substitution effect will cause her to increase her work effort

b. both the income and substitution effect will cause her to decrease her work effort

c. her work effort will increase if the substitution effect is stronger than the income effect

d. her work effort will decrease if the substitution effect is stronger than the income effect

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