Multi-Source Reasoning - Dichotomous
Incorrect.
[[snippet]]Although the table indicates that purchasing power was lower in 1995 than in 1985, that doesn’t imply that the price of every single good was higher. This represents an overall estimate, but as the description introducing the table indicates, it is possible that individual goods and services could change in the opposite direction of the purchasing power shown in the table.
Correct!
[[snippet]]While overall goods may have been more purchasable in 1985 than 1995, the table cannot be taken to represent the trend of all individual goods, but rather an overall representation of purchasing power. Therefore, an inference cannot be made regarding gasoline specifically.
Incorrect
[[snippet]]An increase in interest rates means that taking loans out would be more costly. Since money supply inflation is a result of more money flowing freely in the economy, this would not be a result of higher interest rates.
Correct!
[[snippet]]When interest rates increase, loans are more expensive. Money supply inflation occurs when more money is available in the economy, so this would not be an inferable outcome of higher rates. Higher interest rates would more likely have the opposite effect.
Correct!

[[snippet]]Since cost-push inflation can result from higher transportation costs, it is possible to infer that higher gas prices could potentially cause cost-push inflation for products.
Incorrect.
[[snippet]]Higher gasoline prices would cause an increase in transportation costs for a variety of products, and since higher transportation costs can result in cost-push inflation, this effect can be inferred.
