How Does Progressive Taxation and Redistribution Policies Affect the Lorenz

question 64

Multiple Choice

How does progressive taxation and redistribution policies affect the Lorenz curve and Gini coefficient?

• A) The Lorenz curve becomes more curved and the Gini coefficient increases.
• B) The Lorenz curve becomes less curved and the Gini coefficient increases.
• C) The Lorenz curve becomes more curved and the Gini coefficient decreases.
• D) The Lorenz curve becomes less curved and the Gini coefficient decreases.

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