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The Following Questions Refer to the Information Given Below

Question 12

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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 a family earns $3,000 income,their disposable income is


A) $3,000
B) $4,000
C) $5,000
D) $6,000
E) $8,000

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