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One Way to Reduce the Degree of Income Inequality Is

Question 22

Multiple Choice

One way to reduce the degree of income inequality is to

A) increase transfer payments going to people with low labor and asset incomes and increase taxes on people with high labor and asset incomes.
B) decrease transfer payments going to people with low labor and asset incomes and decrease taxes on people with high labor and asset incomes.
C) increase transfer payments going to people with low labor and asset incomes by less than taxes are increased on the same people.
D) increase transfer payments going to people with high labor and asset incomes by more than taxes are increased on the same people.

Correct Answer: