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An Individual's Marginal Tax Rate Equals

Question 29

Multiple Choice

An individual's marginal tax rate equals


A) total tax payments divided by the average tax rate.
B) the increase in taxes the individual would pay when income rises, expressed as a percentage of the rise in income.
C) total tax payments divided by income.
D) the increase in taxes the individual would pay if the average tax rate were to rise 1%.

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