Suppose under TANF your state provides an income guarantee of $7,000 and a benefit reduction rate of
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Question:
Suppose under TANF your state provides an income guarantee of $7,000 and a benefit reduction rate of 60%. The typical recipient can work up to 2,000 hours per year at a wage of $8 per hour. What would be the effective take-home wage rate if the recipient works 50 hours per year?
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