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AP® Microeconomics

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Moderate

Taxes: Impact on Gini Index

APMICR-JJ6JTK

A country currently has a Gini index of 0.54. Which of the following could be the new Gini index if this country effectively implements a progressive income tax structure?

A

0.35

B

0.54

C

0.78

D

1

E

1.2