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Economics (AS & A Level) · Oct / Nov 2023 · Paper 32 · Question 13

9708Addressing income and wealth inequality

Which combination of fiscal policy measures would be most effective in reducing income inequality?

  1. Atop rates of income tax: increase; indirect taxes: increase; value of state benefits: increase
  2. Btop rates of income tax: increase; indirect taxes: reduce; value of state benefits: increase
  3. Ctop rates of income tax: reduce; indirect taxes: increase; value of state benefits: reduce
  4. Dtop rates of income tax: reduce; indirect taxes: reduce; value of state benefits: reduce

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Correct answer: B. top rates of income tax: increase; indirect taxes: reduce; value of state benefits: increase

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