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cr-passage completion

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cr-passage completion [#permalink] New post 04 Sep 2008, 18:16
Which of the following, if true, is the most logical completion of the argument below?
The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______
(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts

kindly let me know about the line of reasoning here
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Re: cr-passage completion [#permalink] New post 05 Sep 2008, 21:03
spriya wrote:
Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______

(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts

kindly let me know about the line of reasoning here


A. If Grootland’s tax system consistently favor borrowing over saving, there would be either tax relief for borrowing or tax due on savings. However its not the case. Since it offers tax relief for taxpayer’s income that are set aside to increase that taxpayer’s total savings.


So A is correct.
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Re: cr-passage completion [#permalink] New post 05 Sep 2008, 21:54
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GMAT TIGER wrote:
spriya wrote:
Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______

(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts

kindly let me know about the line of reasoning here


A. If Grootland’s tax system consistently favor borrowing over saving, there would be either tax relief for borrowing or tax due on savings. However its not the case. Since it offers tax relief for taxpayer’s income that are set aside to increase that taxpayer’s total savings.


So A is correct.


Oh great !!!OA is A indeed
Thats y E is wrong !!i marked E
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Re: cr-passage completion [#permalink] New post 14 Oct 2013, 06:30
spriya wrote:
Which of the following, if true, is the most logical completion of the argument below?
The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootland’s tax system does not consistently favor borrowing over saving, for if it did, there would be no______
(A) tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts

kindly let me know about the line of reasoning here


How would one interpret answer choice C?
If there is tax relief on unpaid balance I guess then that they can choose not to spend too much. But I guess this answer choice doesn't really fit that well in the stimulus.
We need an answer choice that directly favors total savings or directly affects borrowing.
So A is our best pick

Hope it helps
J :)
Re: cr-passage completion   [#permalink] 14 Oct 2013, 06:30
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