The table given below shows the annual incomes of a family of four and the corresponding transfer incomes. Table 33.3
Refer to Table 33.3.Suppose the government changes the guaranteed income floor to $3, 000.What is the new break-even level of income if the negative income tax rate is changed to 20 percent?
A) $3, 000
B) $15, 000
C) $6, 000
D) $5, 000
E) $30, 000
Correct Answer:
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