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Re: Senator: Some economists believe that our country's [#permalink]
OA is A.

Reasoning as follows
A - Since one of the most difficult problems for many new homeowners is getting the down payment, this would solve that problem.
B - This is speculation.
C - The claim is too broad. The passage does not imply that the government has no means of influencing the savings rate. In fact, this proposal might increase savings.
D - On the contrary, the opposite is likely true.
E - The claim that the economy will be endangered is too strong.
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Re: Senator: Some economists believe that our country's [#permalink]
(A) The proposed incentive is likely to attract additional money into the home buying market.

Seems Ok


(B) Supporters of this proposal have some motive other than their expressed aim.

Out of scope


(C) The government has no effective means of influencing the amount of money that people are willing to put into savings accounts.

Why the Govt. want to influence the money people are putting money in saving accounts


(D) A program that resulted in an increase of tax revenues would be greeted negatively by city, county, and state officials.

This weakens the statement and hence can't be a conclusion


(E) The economy is in danger unless some incentive to increased home ownership can be found to stimulate growth.

Out of scope as the passage says that "for continued growth we require higher level of home ownership" hence there is no danger to economy.




sh00nya wrote:
Senator: Some economists believe that our country's continued growth requires a higher level of home ownership than we currently have. A recent proposal would allow individuals to remove as much as $20,000 from an IRA, SEP IRA, and Keogh without penalty if the money went to the purchase of a primary residence. Supporters of this proposal claim that its implementation would increase revenues for the construction industry as well as tax revenues for city, county, and state governments. The passage as a whole provides the most support for which one of the following conclusions?

(A) The proposed incentive is likely to attract additional money into the home buying market.
(B) Supporters of this proposal have some motive other than their expressed aim.
(C) The government has no effective means of influencing the amount of money that people are willing to put into savings accounts.
(D) A program that resulted in an increase of tax revenues would be greeted negatively by city, county, and state officials.
(E) The economy is in danger unless some incentive to increased home ownership can be found to stimulate growth.
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Re: Senator: Some economists believe that our country's [#permalink]
Pretty simple. Straight A.
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Re: Senator: Some economists believe that our country's [#permalink]
01:19 minute for choice A
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Re: Senator: Some economists believe that our country's [#permalink]
A
rest all are straight out of context
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Re: Senator: Some economists believe that our country's [#permalink]
straight A.



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