Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Redistribution of income through taxation results in greater income for everyone.
B) There is no tradeoff between efficiency and equity.
C) If taxes are so high that people work a lot less, the redistribution of income could make everyone worse off.
D) The pursuit of greater equity through taxation and redistribution may promote efficiency by making everyone happier.
E) Only the rich are negatively affected by very high tax rates.