When military spending increased in Country X ten years ago, : GMAT Critical Reasoning (CR)
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# When military spending increased in Country X ten years ago,

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Manager
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When military spending increased in Country X ten years ago, [#permalink]

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10 Jul 2011, 18:58
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64% (01:45) correct 36% (00:33) wrong based on 31 sessions

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When military spending increased in Country X ten years ago, citizens started spending a smaller percentage of their disposable income on luxury items. When military spending recently decreased, spending on luxury items increased back to its initial level. The perceived threat of war, therefore, persuades consumers to spend less on luxuries than they otherwise would.

The argument above depends on which of the following assumptions?

A. The perceived threat of war has increased over the years.
B. Most citizens supported the decrease in military spending.
C. Citizen's perceptions of the threat of war depend on the amount of military spending by Country X.
D. The people who spent the most money on luxury items when military spending was low were the ones who supported low levels of military spending.
E. There are fewer luxury goods available when military spending increases.
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Re: CR - Assumption 700 level [#permalink]

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10 Jul 2011, 23:55
The answer should be C. the premise states that 10 years ago military spending increased and subsequently spending on luxury items decreased. Then in last sentence the author links the phenomenon with perceived threat of war. so author assumes citizens of country X correlate high military spending with threat of war.
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Re: CR - Assumption 700 level [#permalink]

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11 Jul 2011, 00:09
bschool83 wrote:
When military spending increased in Country X ten years ago, citizens started spending a smaller percentage of their disposable income on luxury items. When military spending recently decreased, spending on luxury items increased back to its initial level. The perceived threat of war, therefore, persuades consumers to spend less on luxuries than they otherwise would.

The argument above depends on which of the following assumptions?

A. The perceived threat of war has increased over the years.
B. Most citizens supported the decrease in military spending.
C. Citizen's perceptions of the threat of war depend on the amount of military spending by Country X.
D. The people who spent the most money on luxury items when military spending was low were the ones who supported low levels of military spending.
E. There are fewer luxury goods available when military spending increases.

I will go with C . what is the OA?
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Re: CR - Assumption 700 level [#permalink]

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13 Jul 2011, 06:09
I say the answer is C. Spending on luxury items is inversely proportional to military spending. Military spending is tied to perceived threat of war. C connects the two.
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Re: CR - Assumption 700 level [#permalink]

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31 Jul 2011, 10:54
C for me
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Re: CR - Assumption 700 level   [#permalink] 31 Jul 2011, 10:54
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