Government intervention to reduce income inequality might reduce growth rates because of rent-seeking behavior. This means that
A. as a larger fraction of the population falls below the poverty line they are pushed out of home ownership and into rental housing, reducing the savings rate.
B. landlords might raise rental rates on housing in order to pay the higher taxes that go with government wealth redistribution programs.
C. people who are not home owners, but reside in rental housing, may become unmotivated and work less, reducing payments to landlords and slowing real estate markets.
D. groups who are not among the neediest might put pressure on government officials to obtain transfers of wealth.
Answer: D
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