Suppose the Government Imposes a Tax of 32 Per Cent

question 131

Multiple Choice

Suppose the government imposes a tax of 32 per cent on the first $40 000 of income, and 45 per cent on all income above $40 000, what is the marginal tax rate when income is $80 000?

• A)20 per cent
• B)32 per cent
• C)77 per cent
• D)45 per cent

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Definitions:

Political Risk

The potential for losses or other adverse impacts on business activities due to political changes or instability in a country.

Foreign Country

A nation distinct from one's own country, typically referred to in the context of international trade, travel, or relations.

Political Actions

Activities undertaken by individuals, groups, or governments to influence political decisions, policies, or public opinion.

Foreign Bonds

Bonds issued in a domestic market by a foreign entity, denominated in the domestic market's currency as a form of investment.