1.President Biden has proposed an increased childcare tax credit, that would give almost all families about $3600 for each child they have, regardless of their income or employment.

a.How would such a policy affect people's incentive to work?

b.Would you describe this as an income effect, a substitution effect, or both?

c.Some have argued that we should only give these increased tax credits to low-income families. Explain the primary advantage and disadvantage of only giving these increased benefits to low-income families.