Consider a poor country where an aid donor

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Consider a poor country where an aid donor introduced a policy that reduced the Headcount Ratio in that country. But when they calculate the Income Gap Ratio (i.e. the income gap divided by the headcount times the poverty line) they observe that it has actually increased. Can you explain this discrepancy. What can you infer? What must have happened? Explain carefully.

Reference no: EM132413431

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