Which of the Following Statements Best Captures the Textbook's Conclusions

question 5

Multiple Choice

Which of the following statements best captures the textbook's conclusions about using fiscal policy to promote equity in developing countries?

• A) Equity is not a proper goal for fiscal policy.
• B) Economic and administrative realities limit the scope for achieving income redistribution through the tax system.
• C) Highly progressive taxes can and should be used to promote equity and efficiency simultaneously.
• D) Tax policy is far more effective than expenditure policy as an instrument for income redistribution.

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Definitions:

Affiliate

To officially attach or connect a person or organization to a larger body or group.

Psychoticism

A personality trait associated with being prone to psychoses, including schizophrenia, characterized by tendencies towards odd or eccentric behaviors.

Hans Eysenck

A psychologist known for his work on the theory of personality and intelligence, emphasizing genetic and environmental factors.

Egocentric

A perspective focused solely on one's own point of view and interests, often neglecting or struggling to understand others' viewpoints.