In the United States:
A. taxes decrease, but transfers increase, income inequality.
B. taxes increase, but transfers reduce, income inequality.
C. both taxes and transfers decrease income inequality.
D. both taxes and transfers increase income inequality.
Answer: C
Economics
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Firms cannot resemble
A) incomplete contracts. B) democracies. C) an organization without externalities. D) a benevolent dictator.
Economics
New classical economists say that a fully anticipated decrease in aggregate demand:
A. shifts the long-run aggregate supply curve to the right. B. shifts the long-run aggregate supply curve to the left. C. moves the economy down along its vertical long-run aggregate supply curve. D. eventually results in a self-correcting increase in aggregate demand.
Economics