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If Growing Income Inequality Results from or Encourages More Rent

Question 48

Multiple Choice

If growing income inequality results from or encourages more rent seeking that, as a whole, make society worse off, this will


A) increase the size of the economic pie despite the income inequality.
B) decrease the size of the economic pie.
C) not change the size of the economic pie because the rent-seeking behavior will benefit enough parties to completely offset the effects of the increases in income inequality.
D) result in complete income inequality as rent seeking continues to occur in the future.

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