How the Wealth Gap Affects Economic Growth

In 2015, a study by the International Monetary Fund projected the consequences of rising inequality on economic growth. The organization’s economists estimated that even a 1 percent increase in the income share of the top 20 percent would drag down growth. In contrast, a rise in the income share of the bottom 20 percent would actually boost growth.

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To prepare for your final assignment, jot down your response to each question in the space provided. You can review your notes in My Work and any of the videos and glossary terms below.