A marginal tax rate of 91% means that:
A) total tax is calculated by taking 91% of income.
B) total tax is calculated by taking 9% of income.
C) for each additional dollar earned, only 91 cents can be used toward consumption.
D) for each additional dollar earned, only 9 cents can be used toward consumption.
E) for each additional dollar earned, 9 cents is taxed away.
Correct Answer:
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