If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be a. above the poverty line. b. close to the median income of all families. c. two times the tax rate. d. close to the poverty line.

If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be a. above the poverty line. b. close to the median income of all families. c. two times the tax rate. d. close to the poverty line.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Income Inequality And Poverty

Section: Chapter Questions

Problem 1CQQ

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Question

97. If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be

	a.	above the poverty line.
	b.	close to the median income of all families.
	c.	two times the tax rate.
	d.	close to the poverty line.

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