Question 1 [8 marks] Read the following article and answer the question: What scope is there to further reduce inequality through redistributive fiscal policies? In your discussion ensure that you consider: (a) the extent and types of inequality in SA, (b) the effect of existing fiscal policies on market income inequality, (c) the capacity for further redistributive policies fiscal policies to deal with inequality, and (d) your own view. Write no more than half a page (Be focused). In your discussion you may draw on insights from other readings for the course. Ensure that any proposals made are adequately motivated. Reading Ingrid Woolard, Rebecca Metz, Gabriela Inchauste, Nora Lustig, Mashekwa Maboshe, Catriona Purfield (2015) How much is inequality reduced by progressive taxation and government spending? https://www.econ3x3.org/article/how-much-inequality-reduced-progressive-taxation-and-government- spending . For the full article "The distributional impact of fiscal policy in South Africa" see http://documents.worldbank.org/curated/en/502441468299632287/pdf/WPS7194.pdf (It is not necessary to read this article)