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