Which of these methods is used by democratic regimes to reduce income inequality?

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Subsidies for the poor

Less tax on the rich

Schemes for poverty alleviation

Both (1) & (3)

answer is D.

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Detailed Solution

Subsidies for the poor and schemes for poverty alleviation are the methods used by democratic regimes to ensure the reduction of income inequality.
As the gap between the rich and the poor is becoming more and more acute with every passing day, democratic regimes worldwide are facing a lot of flak for not doing enough to reduce income inequality. In general, these regimes employ various tactics to tackle this problem. The rich are taxed more than the poor on their income, and the tax money is used to provide services for everyone at cheaper rates. Governments give subsidies to the poor people on commodities of daily use and otherwise so that they can save some money from their earnings. Targeted schemes for poverty alleviation are launched to pull people above the poverty line.

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