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According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?

A. there is no income effect when tax rates are changed
B. the income effect of a wage change is greater than the substitution effect of a wage change.
C. there is no substitution effect when tax rates are changed
D. the substitution effect of a wage change is greater than the income effect of a wage change