Assume that the government proposes a negative income tax that calculates the taxes owed as follows: Taxes Owed = (1/3 *Income) - 10,000.If a family doesn't earn any income,how does the negative income tax affect them?
A) They will receive an income subsidy of $1,000.
B) They will receive an income subsidy of $3,000.
C) They will receive an income subsidy of $10,000.
D) They will not be affected at all,since the negative income tax requires a family to earn income.
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