35. Calculate this taxpayer\'s marginal tax rate. Year 2012 2013 2014 Income $30

Question

35. Calculate this taxpayer's marginal tax rate. Year 2012 2013 2014 Income $30,000 $40,000 $50,000 Tax $2,000 $3,500 $5,000 A, 7.5% B.10% C. I1.4% D. 15% E, 20% 36. You work extra overtime. Your income used to be $20,000 per year. You paid $2.000 in taxes on that. With the overtime you now earn $25,000. Your marginal tax rate is 20%. How much do you pay in taxes now A. $2,000 B. $2,400 C. $3,000 D. $5,000 37. Which of the following steps in an expansionary monetary policy did Keynes argue would not work? A. FOMC purchases of securities increases the monetary base B. Increase in excess reserves leads banks to make more loans C. New loans by banks increases the money supply D. Increase in money supply drives down interest rates E. None of the above 38. According to supply-side theory, which of the following would cause a rightward shift in the aggregate supply curve? A. Lowering marginal tax rates B. Reducing discrimination in employment C. Eliminating excessive Federal workplace safety regulations D. All of the above E. None of the above 39. If the classical view of the equation of exchange is correct, what will happen if the supply of money increases by 10%? A. The price level will fall by 10% B. The price level will fall, but by less than 10% C. Velocity will decrease by 10%, so the price level will stay the same D. The price level will increase, but by less than 10% E. The price level will increase by 10% 40. The primary purpose of the (Federal Deposit Insurance Corporation) is to: A. Control the nation's money supply B. Increase depositor confidence in the banking system C. Provide funds for home mortgages D. Set reserve requirements for the banking system

Explanation / Answer

First question is answered below

1. Correct option: 15%

Reason: As it can be seen, as income is increasing by $10,000, tax is increasing by $1,500

Thus, marginal tax rate = 1500/10000 = 15%

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