Food stamp benefits are phased out in a complicated fashion


Question: Food stamp benefits are phased out in a complicated fashion that varies from state to state, However, at some point near the poverty line, food stamps worth about $1,250 are suddenly lost. Ignoring other aspects of the taz and transfer systems, sketch the income-leisure budget constraint associated with this provision. (Dont worry about the specific slope and intercept of the constraint just sketch the general shape).

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Finance Basics: Food stamp benefits are phased out in a complicated fashion
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