Bunuel
A study separated all of the Saradian firms in a certain industry into two groups. The first group consisted of firms that have the largest proportion of clients outside of Saradia, and the second consists of those with the smallest proportion of such clients. The first group showed a much larger increase in sales over the five-year span in which in the firms were studied. The effect was attributed to the weakness of the Sarade, the currency of Saradia.
Which of the following, if true, would best help explain how the weakness of the Sarade might result in the observed effect?
(A) Each year in the five-year span, the Sarade got weaker relative to the Euro.
(B) When a country's currency is weak, goods sold by firms in that country are relatively inexpensive to customers who reside in countries with stronger currencies.
(C) The weakness of the Sarade caused Saradia's national bank to raise interest rates, making it more expensive for Saradian firms to raise money to fund expansion.
(D) The Sarade is the main currency of the region, so fluctuations in exchange rates affect several neighboring countries in addition to Saradia.
(E) The firms involved in the study were not notified that the study was taking place until after the five-year span was complete.
Which of the following, if true, would best help explain how the weakness of the Sarade might result in the observed effect?
(A) Each year in the five-year span, the Sarade got weaker relative to the Euro.
We are not concerned with any specific currency like Euro.(B) When a country's currency is weak, goods sold by firms in that country are relatively inexpensive to customers who reside in countries with stronger currencies.
This makes sense as these goods would be more affordable and cheaper for other countries leading to increase in foreign sales.(C) The weakness of the Sarade caused Saradia's national bank to raise interest rates, making it more expensive for Saradian firms to raise money to fund expansion.
Expansion plans are out of scope for this argument(D) The Sarade is the main currency of the region, so fluctuations in exchange rates affect several neighboring countries in addition to Saradia.
We don't care about the financial status of Sarade's neighboring countries(E) The firms involved in the study were not notified that the study was taking place until after the five-year span was complete.
Irrelevant