1 – Correct
1 is correct- the income increase of the poor is less than it could have been as seen in data
2 – Correct
2 could definitely be correct and we have already explored the idea that the incomes at the top end may have increased more than those at the bottom end
3 – Correct
3 could also increase the Fair-E coefficient while taxes and benefits change for the poor
Since all 3 statements are correct, E is the answer.