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The government of a county in Latin America wishes to encourage some type of behavior, e.g., increasing the size of families, using the existing personal
The government of a county in Latin America wishes to encourage some type of behavior, e.g., increasing the size of families, using the existing personal income tax. Which is likely to have a greater effect on behavior - a 5,000 Peso deduction for each additional child or a 5,000 Peso credit per child applied to the tax due from the taxpayer? Or would there likely be no difference in the effects of these two alternative tax policies?Explain
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