Which of the Following Is a Governmental Tool Used to Reduce

question 72

Multiple Choice

Which of the following is a governmental tool used to reduce income inequality?

• A)Progressive taxation.
• B)Transfer payments to the poor.
• C)Food stamp program.
• D)Low cost housing for the poor.
• E)All of the above.

---

Definitions:

Oil

A natural fossil fuel that is used primarily for energy production and as a raw material in manufacturing.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Compound Return

It refers to the phenomenon where the interest earned on an investment is reinvested to earn additional interest, leading to exponential growth over time.

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.