GWD-8-Q19: GWD-2-12
Which of the following most logically completes the passage?
Concerned about financial well-being of its elderly citizens, the government of Runagia decided two years ago to increase by 20 percent the government-provided pension paid to all Runagians over 65. Inflation in the intervening period has been negligible, and the increase has been duly received by all eligible Runagians. Nevertheless, many of them are no better off financially than they were before the increase, in large part because ________.
A. They rely entirely on the government pension for their income
B. Runagian banks are so inefficient that it can take up to three weeks to cash a pension check
C. They buy goods whose prices tend to rise especially fast in times of inflation
D. The pension was increased when the number of elderly Runagians below the poverty level reached an all-time high
E. In Runagia children typically supplement the income of elderly parents, but only by enough to provide them with a comfortable living
Why the key is E? I choseC.
The total living source of the elderly are from either the governmental pension or children give back. If the governmental provide more in pension, the children do not need to give their parents back that much “to provide them with a comfortable living.”
“They buy goods whose prices tend to rise especially fast in times of inflation” the purchasing power of the consumer is not depend upon whether a portion of goods are more expensive than the other, rather depends on the Consumer price index.
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