Rosa's annual income increased from $30,000 to $40,000.If Rosa is in the 40 percent marginal tax bracket,the $10,000 increase in income will expand her disposable income by

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Rosa's disposable income increases by the amount of the income increase minus the taxes paid on that increase. With a 40% tax rate, she pays $4,000 in taxes on the $10,000 increase, leaving her with $6,000 additional disposable income.

Rosa's Annual Income Increased from $30,000 to $40,000