Property appreciation widens wealth gaps via asset ownership

Steps:

• Distinguish income inequality (uneven earnings flows) from wealth inequality (uneven asset stocks like property).
• Evaluate options: identify if they primarily alter income streams or asset values.
• Assess disproportionate impacts: wealth effects favor those already holding assets.
• Select option boosting asset values most, as it amplifies existing wealth disparities without equalizing income.

Why B is correct:

• Wealth is assets minus liabilities; rising property values increase net worth for owners (often wealthier households), per standard wealth distribution models, without raising incomes equally.

Why the others are wrong:

• A: Indirect taxes raise consumption costs, hitting lower incomes harder and thus increasing income inequality.
• C: Cutting minimum wage reduces low earners' wages, directly widening income gaps.
• D: Lower savings interest cuts returns on held wealth but acts like reduced investment income, affecting income inequality more.

Final answer: B