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Which of the Following Is True of Welfare Payments

Question 78

Multiple Choice

Which of the following is true of welfare payments?


A) They may help reduce crime, at least temporarily.
B) They are taxed at a 20 percent marginal rate.
C) They are taxed at a low marginal rate in order to provide work incentives.
D) They are unaffected by increases in earned income.
E) They are positively related to income from other sources.

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