MC20 What is the impact of income inequality on the Indian economy?
A. Reduced social cohesion
B. Reduced economic growth
C. Reduced investment
D. All of the above
Answer:D
MC20 What is the impact of income inequality on the Indian economy?
A. Reduced social cohesion B. Reduced economic growth C. Reduced investment D. All of the above
Explanation: Income inequality can have a range of impacts on the Indian economy. When income inequality is high, it can reduce social cohesion, as those at the bottom of the income distribution may feel excluded from society. Additionally, income inequality can reduce economic growth, as those with low incomes may not have the resources needed to participate fully in the economy. Finally, income inequality can reduce investment, as investors may be hesitant to invest in an economy where the benefits of growth are not shared broadly.