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​Assume a Small Town Decides to Build a Park by Imposing

Question 20

Multiple Choice

​Assume a small town decides to build a park by imposing a $2,000 lump-sum tax on each household. If a household's income rises from $50,000 to $75,000, its marginal tax rate is:


A) ​0%
B) ​2.67%
C) ​4%
D) ​8%

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