Question: If an income maintenance program entails a $3,000 basic benefit and a benefit reduction rate of .30, what will be the size of the subsidy

If an income maintenance program entails a $3,000 basic benefit and a benefit reduction rate of .30, what will be the size of the subsidy received by a family that earns $2,000 per year? What will be the family’s total income? What breakeven level of income does this program imply?

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