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Question
The country of Econoville has created a negative income tax for its residents. Tax liability in the country is determined by the following equation:
Taxes owed = (20% of income) - $7,500
If Olivias income is $60,000, what is her total tax owed (a positive number) or tax credit (a negative number)?
a. -$16,500
b. -$12,000
c. $4,500
d. $12,000
e. $16,500
Answer
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