O-LevelEconomicsGovernment and the macroeconomy2281/13 · Oct/Nov 2024 · Q241 Mark
A government increases the rate of progressive income tax and its spending on hospitals. What is likely to happen to the distribution of income and to living standards? [Table 24.1 showing distribution of income and living standards]
Abecomes less even, fall
Bbecomes less even, rise
Cbecomes more even, fall
Dbecomes more even, rise
✓ Correct answer
D: becomes more even, rise
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