Which factor would lead to a greater disparity in income distribution?

Show Answers

Higher levels of employmentLarger unemployment benefitsImplementation of more progressive taxationAdoption of more regressive tax policiesNone of the above

Explanation

Increasing regressive taxes tends to widen income inequality because such taxes take a larger percentage from lower-income earners compared to higher-income individuals. In contrast, higher employment, increased unemployment benefits, and progressive taxes generally help reduce income inequality.