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Suppose a Negative Income Tax Program Is Established at 25

Question 66

Multiple Choice

Suppose a negative income tax program is established at 25 percent, and a povertythreshold minimum of $15,000 is guaranteed for a family of four. If this family earned $50,000 in the workplace, the government payment to the family under this programwould equal


A) $2,500
B) $1,000
C) $10,000
D) $1,500
E) zero

Correct Answer:

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