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Question: Sally earns $50,000 in wages before taxes, she gets $10,000 in transfer payments, and she...

Question: Sally earns $50,000 in wages before taxes, she gets $10,000 in transfer payments, and she pays $5000 in taxes. What is Sally's disposable income?

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disposable income is an income after tax payment and adding the transfer payments

disposable income=wages +trasfer payment -taxes

=50000+10000-5000

=$55000

the disposable income is $55000

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