Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Using the Consumer Price Index, the UK inflation rate was 5.2% in September 2011. By June 2014, the UK inflation rate measured in this way had fallen to 1.6%. What can be concluded with certainty about the period from September 2011 to June 2014?

  • AFixed income earners had increased purchasing power.
  • BPrices were falling.
  • CThe rate of price increases was slowing.
  • DThe real rate of interest became positive.

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