What trend has been observed regarding income inequality over recent years?

The trend observed regarding income inequality in recent years indicates that it has consistently increased, which has been associated with negative impacts on the economy. This trend is evidenced by rising disparities in wealth distribution, where a small percentage of the population holds a significant proportion of total wealth while the majority experience stagnating or declining income levels. Such increasing inequality has been linked to various economic issues, including reduced consumer spending, decreased economic mobility, and heightened social tensions. These dynamics can lead to a less stable economy, as broader segments of the population lack the financial resources to invest in education or businesses, ultimately hindering overall economic growth and innovation.

Furthermore, extensive research highlights that high levels of income inequality can lead to lower rates of economic growth because they can suppress demand and limit the overall purchasing power of the majority. In contrast, the other options do not align with current observations and research findings concerning income inequality's growth and its repercussions on the economy.