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Sarah Moves from Upperland,which Has No Taxes or Transfer Payments,to

Question 73

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Sarah moves from Upperland,which has no taxes or transfer payments,to Lowerland,where she is hit with taxes of $2,000 and receives transfer payments of $3,000.She earns the same wage in both countries,but in Lowerland her disposable income is


A) $1,000 higher
B) $1,000 lower
C) $5,000 higher
D) $2,000 lower
E) $3,000 higher

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