Poverty reduction efforts reduce inequality at the same time if
A) the incomes of non-poor remain unaffected.
B) the financing for the poverty reduction efforts is derived by taxing the non-poor.
C) the incomes of poor grow faster than the incomes of non-poor.
D) all of the above.

Question

Quizplus · Accepted Answer

Poverty reduction efforts can simultaneously reduce inequality if the incomes of the non-poor remain unchanged, if the efforts are financed by taxing the non-poor, and if the incomes of the poor grow faster than those of the non-poor. Each of these conditions helps to narrow the income gap between the poor and the non-poor, thereby reducing inequality.

Poverty Reduction Efforts Reduce Inequality at the Same Time If