Explain the view that income inequality can actually increase the income of the poor
The rich tend to do most of the investing in the economy, stimulating economic growth. This means that
eventually the absolute size of the poor's small share of total income becomes larger.
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The political party that is in power determines the position and shape of the production possibilities frontier that constrains the choices of the economy.
Answer the following statement true (T) or false (F)
"The crowding-out effect occurs when a government budget surplus reduces private savings." Is the previous statement true or false? Explain your answer
What will be an ideal response?
By 2030, the number of workers per Social Security beneficiary will be approximately
a. two. b. three. c. four. d. six.
When the Sarbanes-Oxley Act that established new accounting rules was passed, analysts suggested that the new rules would not improve protections for the investing public, but it would result in more work for accountants. If the professors are right, these regulations are an example of:
A. comparative advantage. B. laissez faire. C. demerit goods. D. government failure.