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Assume that you are a policy analyst at a prestigious thinktank in Washington, DC, and you have been asked to provide a policy recommendation that

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Assume that you are a policy analyst at a prestigious "thinktank" in Washington, DC, and you have been asked to provide a policy recommendation that will appease both the liberals and conservatives in the House Committee on Ways and Means. Specifically, you are faced with the task of devising a solution to what might be labeled a "poverty and dependency" conundrum, whereby your policy solution must reduce both poverty and dependency simultaneously. As such, you suggest the implementation of an antipoverty program that would provide a minimum level of income to all those who fall below the poverty line. You also suggest the use of an "earnings disregard" for the express purpose of providing a work incentive. For the sake of illustration, you want to show that the amount of total monthly income for a family of three with a working member is greater than the amount of total monthly income for a family of three with no working member. Assuming a 50% disregard and a maximum monthly grant of $1,600, what is the amount of total monthly income for a family of three with $1,400 in gross (monthly) earnings? a. $2,100 b. $2,150 c. $2,200 d. None of the above

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