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Thread: Concerned about financial

  1. #1
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    Concerned about financial

    Concerned about financial well-being of its elderly citizens, the government of
    Runagiadecided two years ago to increase by 20 percent the governmentprovided
    pensionpaid 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
    Official Answer -E i don't see why it should be E.

  2. #2
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    The catch here is " but only by enough to provide them with a comfortable living"
    The children only gave their parents the amount of additional money required for a comfortable living.
    So when the amount of pension increased, the contribution of children (as they adjusted to the amount now required for comfortable living). So in both the cases total money with parents remained the same.

  3. #3
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    Not a very good CR but with given options, answer has to be E.

  4. #4
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    on same reasoning as Target- IMO E

  5. #5
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    can you please tell me the source of this CR... as I find this very ambigious...

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