Which of the following is a feature of the 'Wealth Inequality' literature associated with Piketty?
A. Capital accumulation always reduces inequality
B. When the rate of return on capital exceeds the growth rate of the economy, wealth inequality tends to rise
C. Only labour income inequality matters
D. Wealth inequality always declines with development
Answer: Option B
Solution (By JKSSB Mock Tests)
Piketty’s central argument is that when the rate of return on capital (r) systematically exceeds the growth rate of the economy (g), the share of capital in national income and the concentration of wealth tend to increase.
Explanation:
A central-bank digital currency is a digital payment instrument denominated in the national unit of account that is a direct liability of the central bank, distinct from both physical cash and commercial-bank deposits.
Explanation:
In the calibration methodology associated with real-business-cycle and dynamic stochastic general-equilibrium models, key parameters are set so that the model reproduces selected long-run averages or other empirical moments.
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