What effect does implementing a progressive tax system have on income inequality in a country? A. It increases income inequality. B. It has no effect on income inequality. C. It decreases income inequality. D. It first decreases income inequality, then increases it.

What effect does implementing a progressive tax system have on income inequality in a country? A. It increases income inequality. B. It has no effect on income inequality. C. It decreases income inequality. D. It first decreases income inequality, then increases it.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter28: The Distribution Of Income And Poverty

Section: Chapter Questions

Problem 3QP

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Question

What effect does implementing a
progressive tax system have on income
inequality in a country?
A. It increases income inequality.
B. It has no effect on income inequality.
C. It decreases income inequality.
D. It first decreases income inequality, then
increases it.

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