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A Government's Policy of Redistributing Income Makes the Income Distribution

Question 10

Multiple Choice

A government's policy of redistributing income makes the income distribution more equitable,


A) distorts incentives, and makes the allocation of resources more efficient.
B) alters behavior, and makes the allocation of resources more efficient.
C) distorts incentives but does not alter behavior.
D) distorts incentives, and makes the allocation of resources less efficient.

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