Which of the Following Is Not a Characteristic of the Earned

question 71

Multiple Choice

Which of the following is not a characteristic of the Earned Income Tax Credit (EITC) ?

• A)It does not discourage recipients from working.
• B)It is less distortionary than other anti-poverty programs.
• C)It helps the disabled who cannot work.
• D)It applies only to the working poor.

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Definitions:

Depository Institutions

Financial institutions that accept deposits from the public, such as banks, credit unions, and savings and loan associations.

Money Supply

The total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a specific time.

Prime Rate

The interest rate that commercial banks charge their most credit-worthy customers, often used as a reference for setting various interest rates.

Great Recession

A severe global economic downturn that occurred from late 2007 through mid-2009, marked by significant declines in housing prices and increased unemployment rates.