Print Calculator Question 18 of 20 Sapling Learning Map do m

Print Calculator Question 18 of 20 Sapling Learning Map do ment of Luvania (fictional country) instituted reforms to improve income disparities In 1990, the which were determined to be high across the nation. In 2005, in an effort to tout the success of its democratic reforms, Luvania again measured income inequality across the nation. Which of the following programs is most likely responsible for the change in income inequality between 1990 and 2005 that is shown in the graph to the left? Cumulative Share of Income 1.0 0.8 0.6 0.4 0.2 0.0 Perfect Equality O Universal voting for all people over 18 years old Cur of tneax national currency to replace the highly-Inflated 2005 o Prosecution of financial crimes commited since the transition to democracy A new tax for the highest quintile earners, to fund public education 990 00 0.2 0 6 ncome Quintiles 04 O 0.8 1.0 O Large Increase O No Change O Large Decrease Vladim Mestyoich is elected president of uvania and quickly implements a new tax system O Slight Increase aimed at reducing the percent of income the top three quintiles pay in taxes. Using your kn income lInequalt u predict will happnto Slight Decrease Previous Give Up & View Solution Check Answer Next Exit Hint about us careers |prvacy policy terms

Solution

The correct answer is D. A tax on the highest quintile will reduce income inequality. The correct answer is D.

There will be a large increase income inequality as the higher quintiles are paying lower taxes.