Economics · May / June 2020 · Paper 12 · Question 23
2281Inflation
The table gives information about three economic indicators in four countries. | | rate of inflation % | rate of interest % | rate of 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?
- ACountries with higher inflation have higher interest rates.
- BCountries with higher interest rates have lower unemployment.
- CThe country with the lowest inflation had the highest unemployment.
- DThe country with the lowest unemployment had the lowest inflation.
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Correct answer: A. Countries with higher inflation have higher interest rates.
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