Greater income equality that is achieved through the redistribution of income is thought to

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Income redistribution typically involves taxes or government transfers that decrease the incentives to work or save for individuals, leading to reduced production and hence, lower income in the economy. This opportunity cost needs to be considered when evaluating the trade-offs of income equality. While it may address issues of poverty or inequality, it can also dampen economic growth and reduce overall well-being. A and B are unlikely outcomes of income redistribution, while C is a trade-off that needs to be acknowledged.

Greater Income Equality That Is Achieved Through the Redistribution of Income