Economics (AS & A Level) · May / June 2021 · Paper 13 · Question 30

The graph shows inflation rates over 10 years for selected emerging economies. Government central banks set target minimum inflation rates before readjusting interest rates to stabilise the economy. If the minimum inflation rate target set by central banks was 4% per year, at which points would they allow interest rates to fall?

1. AW and X
2. BX and Y
3. CY and Z
4. DZ and W

As printed in the paper