A – Wrong
We cannot conclude for sure that the government’s fiscal policy is definitely the cause of the rise in inequality. There could be other reasons or causes too.
B – Wrong
Again, B cannot be concluded as it is a very general statement to make.
C – Wrong
We do not know what the phrase ‘better off’ could mean and hence we cannot reliably conclude this. It is too vague.
D – Correct
Chart 1 shows that there has been a net gain in the income of poorer people. However, chart 2 shows that the Fair-coefficient has risen at the same time. The only way both of these facts could go hand in hand is if the pre-tax income (income before tax) has increased for the richer people.
E – Wrong
This is wrong because the poor household have had a net gain in income according to Chart 1.