Other things equal, tax cuts favoring the rich and reductions in funding for government programs favoring the poor would be expected to:
A) increase income inequality, causing the Lorenz curve to bend toward the diagonal line.
B) decrease income inequality, causing the Lorenz curve to bend toward the diagonal line.
C) increase income inequality, causing the Lorenz curve to bend away from the diagonal line.
D) decrease income inequality, causing the Lorenz curve to bend away from the diagonal line.
Correct Answer:
Verified
Q35: Refer to the graph shown. 
Q36: Refer to the graph shown. 
Q37: The U.S. official poverty threshold is:
A) three
Q38: Refer to the graph shown. 
Q39: Refer to the graph shown. 
Q41: Today, the Gini coefficient of income inequality
Q42: Since the minimum food budget used to
Q43: According to official statistics in the United
Q44: A curve that shows the wealth distribution
Q45: Refer to the following graph. 
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