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A redistribution of income in a country can best be brought about through:

  1. progressive taxation combined with progressive expenditure
  2. progressive taxation combined with regressive expenditure
  3. regressive taxation combined with regressive expenditure
  4. regressive taxation combined with progressive expenditure

Explanation

Option (a) is correct
  • Progressive taxation imposes a higher rate on higher incomes, and progressive public expenditure (welfare, subsidies, social schemes) benefits lower-income groups. Together, they reduce income inequality.
Answer: (a) progressive taxation combined with progressive expenditure
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