Suppose the government taxes 25 percent of the first $60,000 of income and 40 percent of all income above $60,000 . For a person earning $200,000 . the marginal tax rate is

a. 25 percent, and the average tax rate is 32.5 percent.
b. 25 percent, and the average tax rate is 36 percent.
c. 40 percent, and the average tax rate is 32.5 percent.
d. 40 percent, and the average tax rate is 36 percent.


d

Economics

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Economics