New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Tax rates on higher income groups have been increased

    resulting in ________.
    A economic stability Correct Answer Incorrect Answer
    B reducing inequalities of income and wealth Correct Answer Incorrect Answer
    C economic growth Correct Answer Incorrect Answer
    D reducing regional disparities Correct Answer Incorrect Answer

    Solution

    Increasing tax rates on higher income groups primarily aims to address income and wealth inequality. By taxing the wealthy at higher rates, governments can redistribute these funds to support public welfare programs like education, healthcare, and social security that benefit lower-income groups. This approach helps reduce income disparities and bridge the gap between rich and poor. Such policies promote social justice, economic fairness, and can lead to greater social stability by addressing economic disparities.

    Practice Next

    Relevant for Exams: