With a Negative Income Tax Featuring an $8,000 Minimum Level

question 15

Multiple Choice

With a negative income tax featuring an $8,000 minimum level of income and a 20 percent tax rate, a household earning zero dollars would receive a subsidy of:

• A)zero.
• B)$1,600.
• C)$6,400.
• D)$8,000
• E)$4,000.

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