Note AcademyNote Academy

Economics · May / June 2016 · Paper 11 · Question 22

2281Inflation

The table gives information about three economic indicators in four countries. | | inflation % | interest rates % | unemployment % | |---|---|---|---| | country W | 1.4 | 3.4 | 10.2 | | country X | 3.7 | 8.7 | 12.3 | | country Y | 3.6 | 7.3 | 14.2 | | country Z | 2.1 | 6.0 | 7.7 | What may be concluded from this information?

  1. ACountries with higher inflation have higher interest rates.
  2. BCountries with higher interest rates have lower unemployment.
  3. CThe country with the lowest inflation had the highest unemployment.
  4. DThe country with the lowest unemployment had the lowest inflation.

As printed in the paper

Show the answer

Correct answer: A. Countries with higher inflation have higher interest rates.

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.