Andy Observes That the Income Distribution Between the Richest and Poorest

question 15

Essay

Andy observes that the income distribution between the richest and poorest people in the population has remained fixed for decades. He concludes that the rich stay rich and the poor stay poor. Is this a valid conclusion, or has Andy missed something?

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Definitions:

Redeem

The act of exchanging something, such as a coupon or financial securities, for a specific value or service.

Maturity Date

is the specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.

Bond Certificate

A physical document representing the investor's right to receive the principal and interest from a bond issuer.