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Current Attempt in Progress Congress and the president have decided to increase the federal tax rate in an effort to reduce the budget deficit. Suppose
Current Attempt in Progress
Congress and the president have decided to increase the federal tax rate in an effort to reduce the budget deficit. Suppose that Donna Clark will pay percent of her bonus to the federal government for taxes if she accepts the bonus of $ today and percent if she receives her bonus of $ in years. She can invest at percent. Will the increase in tax rates affect her decision?
It her decision.
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