GMAT Club Test: V04- 29

good one. I chose A. B seems clear now. A uses strong wording and I was inclined to reject it but between B and A picked A.
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Why do you guys reject C?
Sorry, i think B seems best option but i cannot find any reason to reject C.
Author is assuming that "Agencies created under the New Deal routinely exercised control beyond what was stated in their charters." and that is the reason agencies became hindrance rather than a provider of economic stability.

Correct me if i am wrong.
Thanks.
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Simple answer: B. Economists think that the federal govt should intervene only as required and stay out if the economy is ok.
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During the Great Depression, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to provide and administer relief to the country, which had been devastated by the 1929 stock market crash. Many agencies created under the New Deal were discontinued in subsequent decades, however, when policymakers grew uncomfortable with the amount of power wielded by the federal government. Additionally, a large number of economists at the time felt the market had recovered to the point that federal regulation had become more a hindrance to than a provider of economic stability.

The economists’ support of the discontinuation of New Deal programs rests on which of the following assumptions about the role of the federal government in the market?

(a) Interference by federal government in the market can never create economic stability.
(B) Federal regulation of the market is an emergency measure and, as such, should be temporary.
(C) Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
(D) Policymakers who discontinued New Deal programs were not the same policymakers who originally implemented them.
(E) New Deal programs designed to provide economic relief actually perpetuated market instability.

OA later some discussion
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I go for B.
In the question stem it says that the economy had recovered enough and now the regulation is a hinderence. So economists thought it worked and is now causing issues.

Option B best reflects the temporary view of the economists

C is out of scope
E actually caught my eye at first but if that was the case the economy may not have recovered and economists may have seen it as a hindernce before.

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A good way to answer this is to negate the answers. If the conclusion cannot hold true with the negated answer then that is the correct answer.

The two most common answers were C and B

(B) Federal regulation of the market is an emergency measure and, as such, should be temporary.
---(Negate) cannot be temporary. If they cannot be temporary then the agencies cannot be discontinued. This is the answer.
(C) Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
----(negate) rarely / did not exercise control beyond what was states in their charters. If they did not go beyond their charters then The discontinued agencies would still be there.

Let me know what your opinion is on how i answered the question. I am still rusty on answering CR questions.
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B it is.If the economy becomes stable then the federal agencies and their powers should be withdrawn as they will only prove themselves an hindrance as compared to an business booster.

A) Interference by federal government in the market can never create economic stability.
B) Federal regulation of the market is an emergency measure and, as such, should be temporary.
at the time of need federal regulation's help was good , temporarily but later when the need was not required then it could have been stopped.
C) Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
D) Policymakers who discontinued New Deal programs were not the same policymakers who originally implemented them.
E) New Deal programs designed to provide economic relief actually perpetuated market instability.
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The Question in the passage is about what economists.
The most important point to note here is what economist felt.
So the key line is: economists at the time felt the market had recovered to the point…

Now look at the choices and eliminate the wrong choices:
During the Great Depression, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to provide and administer relief to the country, which had been devastated by the
A) Interference by federal government in the market can never create economic stability.
-- This is nowhere said or meant by the economists.

B) Federal regulation of the market is an emergency measure and, as such, should be temporary.
Correct! This is correct as it indicates what economist means when they said that At this point market has recovered to a point.
C) Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
- -Not relevant as not related to provided economist thinking in anyway.

D) Policymakers who discontinued New Deal programs were not the same policymakers who originally implemented them.
- -Not relevant as not related to provided economist thinking in anyway.

E) New Deal programs designed to provide economic relief actually perpetuated market instability.
- -Not relevant as not related to provided economist thinking in anyway.
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