Author Question: With a negative income tax featuring an 8,000 minimum level of income and a 20 tax rate, a household ... (Read 123 times)

dollx · **on:** Jun 30, 2018

With a negative income tax featuring an 8,000 minimum level of income and a 20 tax rate, a household earning 8,000 dollars would receive a subsidy of:
a. zero
b. 1,600
c. 6,400
d. 8,000

Question 2

Assume that Jane has limited wealth to invest in two assets both of which promise her returns worth 3,000 after two years. The first is a bank deposit assuring an interest of 10 percent per annum and the second is a private bond with an interest rate of 8 percent per annum. Which of the two would require a low initial investment and of what amount?
a. The bond requiring an initial investment worth 2,564 .
b. The bank deposit requiring an initial investment worth 2,479.
c. The bond requiring an initial investment worth 2,479.
d. The bank deposit requiring an initial investment worth 2,564.