Plan: Concerned about the welfare of its senior citizens,
the government of Runagia decided two years ago to
increase by 20 percent the government-provided
pension paid to all Runagians age sixty-five and older.
Result: Many Runagian senior citizens are no better off
financially now than they were before the increase.
Further information: The annual rate of inflation since
the pension increase has been below 5 percent, and
the increased pension has been duly received by all
In light of the further information, which of the
following, if true, does most to explain the result that
followed implementation of the plan?
(A) The majority of senior citizens whose financial
position has not improved rely entirely on the
government pension for their income.
(B) The Runagian banking system is so inefficient
that cashing a pension check can take as much
as three weeks.
(C) The prices of goods and services that meet the
special needs of many senior citizens have
increased at a rate much higher than the rate of
(D) The pension increase occurred at a time when
the number of Runagians age sixty-five and older
who were living below the poverty level was at
an all-time high.
(E) The most recent pension increase was only the
second such increase in the last ten years.