Which of the following is a governmental tool used to reduce income inequality?
A)Progressive taxation.
B)Transfer payments to the poor.
C)Food stamp program.
D)Low cost housing for the poor.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the above are governmental tools used to reduce income inequality. Progressive taxation means that those who earn more pay a higher percentage of their income in taxes. Transfer payments to the poor, such as welfare or unemployment benefits, provide financial assistance to those who have low or no income. The food stamp program provides assistance to low-income households to purchase food. Low-cost housing for the poor provides affordable housing options for those who cannot afford market rate rentals or housing. Together, these policies work to reduce income inequality by providing assistance to those who need it most.

Which of the Following Is a Governmental Tool Used to Reduce