Which of the following would cause income to become more unequal ?
Correct answer: D. More regressive taxes
- A. Increased employment
- B. Increased unemployment allowance
- C. More progressive taxes
- D. More regressive taxes
Explanation
Regressive taxes take a larger proportion of income from low-income groups than from high-income groups, widening income disparities. Progressive taxes and unemployment support generally reduce inequality, while increased employment often raises incomes.
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