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Lawmaker: Raising taxes is not the only means of reducing

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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 12 Jul 2010, 01:35
Should be D.

I dont see any use in assuming A.

Argument says says. govt can sell the helium and clear its debt..irrespective of whether govt needs it or not.

But what if the price fall when govt tries to sell, this clearly weakens the argument. And we need this assumption to defend the conclusion.
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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 12 Jul 2010, 01:44
Answer should be D..
What is OA??
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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 12 Jul 2010, 04:56
i feel the answer is b.. This is the assumption if not taken will fail the conclusion of the total debt part. I may be wrong though
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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 13 Jul 2010, 06:04
D . Well if govt is not using it then better it sells it off and invests the money or fill balloons with the gas.

Its not about the need here as said in A.

Plz tell OA, if it exists :)
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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 13 Jul 2010, 10:49
after negating B, argument falls apart . So, B
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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 04 Nov 2015, 10:18
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Re: Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 24 Nov 2015, 17:41
aielman wrote:
I would go with option A.

Option D, though appealing has a fundamental mathematical pitfall.

Lets say the buy price of the Govt is 100$ for 10 units therefore the total cost of accruing the helium is 1000$, now the current market price is 125$ for each unit.

Now 24% of 125$ would be 30$. If the market value of helium decreases even by 24%, the net selling price of one unit of helium would be 95$. If the government sells 9 units of helium at this price and 1 unit at 125$, the total amount it would gain is
95*9 + 125*1 = 980$ (this is the worst case scenario).
Still running a debt of 20$.

So i guess option A is the only one that holds, cos a proposition to sell the helium is made iff the govt has no current need for it.


The math is good. But, the argument depends on the fact that government ought to sell the He at market price only. So, the 1 unit 125 is not possible. It has to sell all units at 95 only. Anyways, A was close for me too. If govt. has no current need, it might sell He. If it has need, it won't sell He. But, A doesn't address the money thing, while D does.
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Lawmaker: Raising taxes is not the only means of reducing [#permalink] New post 09 Dec 2015, 10:30
reply2spg wrote:
Lawmaker: Raising taxes is not the only means of reducing government debt. The government’s stockpile of helium is worth 25 percent more, at current market prices, than the debt accumulated in acquiring and storing it. Therefore, by selling the helium, the government can not only pay off that debt but reduce its overall debt as well.

Which of the following is an assumption on which the argument depends?

A. The government has no current need for helium.
B. Twenty-five percent of the debt the government has accumulated in Stockpiling helium is not an insignificant portion of the government’s Total debt.
C. It is not in the lawmaker’s interest to advocate raising taxes as a Means of reducing government debt.
D. Attempts to sell the government’s helium will not depress the market Price of helium by more than 25 percent.
E. The government will not incur any costs in closing its facilities for stockpiling helium.


My answer is D without any doubt. Just understand that, say 100 dollar tor acquiring the stock and 25 dollar gain for market price favour. The last part 25dollar, which is a gain, can help reduce debt overall. Assumption answer anyhow tries to help to remove any inconsitency between conclusion and premises. Here, seems no such inconsitency, nor any any new things in the conclusion without the help or touch of premises. So, it might seem no way to help the conclusion to fill up a gap, since no gap available. Still, you have an opportunity to help. How? Think ..how can you give money to a guy who is too rich to get your help! still, you can help him, even without paying a dollar! This is through defending other possibilities of his expenses , for example, you can do something that will reduce his at least one way of expenses (it is like, saving a dollar from lost is like earning a new dollar).This is called defender rule!
This defender rule needs to be applied here, since no obvious gap is evident. Such rule has often a signature to recognize easily..which is..using 'not' in order to cancel out one possibility of attack.Answer D is a classic example.
Lawmaker: Raising taxes is not the only means of reducing   [#permalink] 09 Dec 2015, 10:30

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