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# Five years ago, as part of a plan to encourage citizens of

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Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 10:46
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Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working. Which of the following, if true, most seriously weakens the argument? A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government. C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder. D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced. [Reveal] Spoiler: OA If you have any questions you can ask an expert New!  Economist GMAT Tutor Discount Codes EMPOWERgmat Discount Codes Optimus Prep Discount Codes Manager Joined: 28 Sep 2007 Posts: 213 Followers: 1 Kudos [?]: 17 [1] , given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 14 May 2008, 10:53 1 This post received KUDOS I would say B. Because most of the people who save are workers, and most workers are not eligible for this special account if they already have an account at work. VP Joined: 10 Jun 2007 Posts: 1459 Followers: 7 Kudos [?]: 255 [1] , given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 14 May 2008, 13:25 1 This post received KUDOS saravalli wrote: Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to$3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.

D for me.
The amount of money saved is the same if D is true, so plan is not really working. No money has been saved.
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 13:29
D for me as well
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 18:55
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saravalli wrote:
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working. Which of the following, if true, most seriously weakens the argument? A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government. C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder. D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced. I choose D. I re-read each answer 3 times. To weaken the argument, you have to pick the answer that shows either a pre-existing condition allowing the current condition to exist, or an outside variable causing the current condition to come forth. D accomplishes that. Director Joined: 01 Jan 2008 Posts: 513 Followers: 3 Kudos [?]: 52 [1] , given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 14 May 2008, 19:29 1 This post received KUDOS Great Question. D is best. Manager Joined: 31 Oct 2007 Posts: 116 Followers: 1 Kudos [?]: 15 [1] , given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 14 May 2008, 19:39 1 This post received KUDOS Quote: I re-read each answer 3 times. To weaken the argument, you have to pick the answer that shows either a pre-existing condition allowing the current condition to exist, or an outside variable causing the current condition to come forth. D accomplishes that. Yes D is correct. It only states why govt plan is not working. That is million accumulate to these accounts from other accounts and not due to new savings. _________________ Many people dream, but some wake up and work towards it. Intern Joined: 26 Apr 2008 Posts: 49 Followers: 1 Kudos [?]: 2 [0], given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 14 May 2008, 19:47 I concur Director Joined: 30 Jun 2007 Posts: 793 Followers: 1 Kudos [?]: 157 [0], given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 14 May 2008, 20:20 Argument: Special account increased the savings. Weaken: If increase in account is due to transfer of other savings deposits then will weakens the argument. A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. [Definitely does not address increase in savings - eliminate it] B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government. [Strengthens the argument – eliminate it] C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder. [Tax and Tax bracket is out of scope – eliminate it] D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. [Hold it] E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced. [Out of scope – eliminate it] Answer: D Director Joined: 06 Jan 2008 Posts: 555 Followers: 2 Kudos [?]: 352 [0], given: 2 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 15 May 2008, 08:44 OA is D. Thanks Manager Joined: 28 Apr 2008 Posts: 133 Followers: 2 Kudos [?]: 52 [0], given: 0 Re: Five years ago, as part of a plan to encourage citizens of [#permalink] ### Show Tags 15 May 2008, 09:44 (-) to encourage L's citizen to put$'s in savings act -> L's govt. Plan
Plan : 3K in account with No Tax due ON INTEREST unless $'s withrdrawn before acc.holder reaches 65. Millions in special accounts -> Govt's plan is working (conclusion) May be the millions are coming from some rich folks that are close to retirement ! saravalli wrote: Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to$3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
>> The aim of the govt was to encourage citizens to put more money into savings. So, if people keep withdrawing it weakens the argument.

B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
>> This only talks about workers in Levaska. What if only 1% of Levaska worked sounds crazy but we dont have information about workers vs the rest of population.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
>> Irrelevant.
>> Opposite of what we want.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.
>>Irrelevant.
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15 May 2008, 09:46
I was too quick to eliminate D. How silly
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 09:56
yeah D for me too
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 22:38
saravalli wrote:
OA is D. Thanks

saravalli, I think D strengthen, rather than weaken the plan! Do you think so? for me, E just weaken the plan!
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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03 Aug 2008, 11:41
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to \$3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?
A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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03 Aug 2008, 12:07
D
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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04 Aug 2008, 13:08
D as well.
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25 Aug 2009, 07:18
is the OA correct for this one?????

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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25 Aug 2009, 15:55
D, as it's just one kind of saving transforming into another...
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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26 Aug 2009, 06:57
Yep D!
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Re: Five years ago, as part of a plan to encourage citizens of   [#permalink] 26 Aug 2009, 06:57

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