The Following Questions Refer to the Information Given Below

Multiple Choice

The Following Questions Refer to the information given below.
Suppose the government implements a negative income tax plan to deal with the poverty problem.The negative income tax rate is set at 50%,and the break-even level of income is set at $5,000.
-If the negative income tax rate were reduced from 50% to 40% while the guaranteed income level is held constant,the cost of the plan would

A) Increase
B) Decrease by more than 10%
C) Decrease by 10%
D) Not change
E) Not be able to be determined