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Economists Define the Disposable Annual Income for an Individual by the Equation

Question 91

Multiple Choice

Economists define the disposable annual income for an individual by the equation D = (1 - r) T, where T is the individual's total income and r is the net rate at which he or she is taxed. What is the disposable income for an individual whose income is $20,000 and whose net tax rate is 31%? ​


A) $6,200
B) $47,600
C) $20,000
D) $13,800
E) $33,800

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