Multiple Choice
If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease.
B) equality of incomes would increase but efficiency would decrease.
C) efficiency would increase but equality of incomes would decrease.
D) efficiency and equality of incomes would both increase.
Correct Answer:

Verified
Correct Answer:
Verified
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