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Timothy just got into a big fight with his girlfriend, and as a result, he is in a bad mood. When Kate asks him to contribute to her charity organization, Timothy readily agrees, which makes him feel better. Timothy's behavior can best be explained by __________.
Taxable Income
The amount of an individual's or corporation's income used to determine how much tax is owed to the government.
Marginal Tax Rate
The percentage of tax applied to your income for every tax bracket in which you qualify.
Average Tax Rate
The fraction of an individual's total income that is paid in taxes, calculated by dividing the total taxes paid by total income.
Taxable Income
the amount of income used to determine how much tax an individual or a company owes to the government, after deductions and exemptions.
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