Question 5 The income effect from a decrease in the tax rate on wage income will A generally result in an increase in both leisure and money income. B generally result in an increase in leisure but a fall in money income. generally result in a fall in leisure and a rise in money income. D) None of the above. Question 6 In general, the income and substitution effects of a change in the tax rate on wage income (Aare both positive. B work in the same direction. work in opposite directions. None of the above