Statement I: One Reason for the Greater Concentration of Wealth

question 273

Multiple Choice

Statement I: One reason for the greater concentration of wealth in the hands of the rich is the slashing of the federal income tax rates paid by the rich over the last three decades.
Statement II: In the U.S.income is more evenly distributed than wealth.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Cash Flow

The net amount of cash being transferred into and out of a business, measuring its financial health.

Bond Issuing

The process by which a borrower (corporate or governmental) raises funds by selling bonds to investors.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, determining the periodic interest payments to the bondholders.