Question

List three policies that can affect the level of economic inequality.

Answer 1

1) tax rate or tax policy is one of the main policies that affect the inequality level because if you use progressive taxation then then too many quality can decrease and if you use regressive taxation the income inequality increases.

2) policies encouraging education can be considered as the policies acting income inequality because if poor and pursue higher education, then gradually income inequality can be reduced else only the rich can study more increasing the income inequality

3) cost of assets such as basic necessities like housing provided at lower price for the poor, it could encourage higher savings rate as a result of which the income inequality can be reduced and thereyhousing policies also affect the inequality level