Which of the following is true of a change in nonlabor income?

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

Answer: D