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A politician claims by giving the top 10% earners a tax break, median income will rise. Check all that apply. A) Correct, the whole income
A politician claims by giving the top 10% earners a tax break, median income will rise. Check all that apply.
A) Correct, the whole income distribution moves up ("the flood raises all boats")
B) Possibly correct if they are talking about indirect effects (like "trickle down")
C) Clearly wrong in terms of direct effects: Increasing the upper few percentages of a distribution will move the mean, but not the median.
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