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# Boldface Revision: Chief Economist: Usually, the release of economic

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Boldface Revision: Chief Economist: Usually, the release of economic  [#permalink]

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20 Mar 2015, 23:58
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Difficulty:

35% (medium)

Question Stats:

73% (01:51) correct 27% (02:06) wrong based on 448 sessions

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This question is part of the GMAT Club Critical Reasoning: Boldface Revision Project.

Chief Economist: Usually, the release of economic data about higher-than-expected growth in the Gross Domestic Product (GDP) results in an increase in stock prices. However, this quarter, the release of data about strong GDP growth is most likely to result in a decrease rather than an increase in stock prices. Robust GDP growth will lead to higher interest rates, increasing the attractiveness of bonds and causing a shift of capital from equity to debt securities. In the above argument, the statements in boldface play which of the following roles?

A. The first acknowledges a consideration against the main conclusion of the chief economist; the second is that conclusion.

B. The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.

C. The first is a generalization that the chief economist accepts as true; the second is a consequence that follows from that generalization.

D. The first is evidence that the chief economist provides in support of a certain prediction; the second is that prediction.

E. The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.

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Re: Boldface Revision: Chief Economist: Usually, the release of economic  [#permalink]

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21 Mar 2015, 12:25
I think the right answer is B. Wait for OA.
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Re: Boldface Revision: Chief Economist: Usually, the release of economic  [#permalink]

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29 Mar 2015, 20:02
The chief economist begins his argument by describing the usual relationship of
cause and effect. Thus, the first statement in boldface represents a
generalization that the chief economist accepts as accurate. The economist then
goes on to conclude that this time, however, the usual cause-and-effect
relationship will not hold and strong figures of the GDP will cause a decrease
rather than an increase in stock prices. To support this conclusion, the economist
offers evidence explaining how strong GDP figures may lead to lower stock
prices. Therefore, the second statement in boldface represents evidence that
supports the main conclusion of the economist.

(A) This answer choice correctly describes the role of the first statement but
incorrectly states that the second statement in boldface represents the
conclusion of the economist rather than the evidence that supports that
conclusion. Remember, the conclusion of the economist is that strong GDP
figures will result in a decrease rather than an increase in stock prices.

(B) CORRECT. This answer choice correctly identifies the role of each of the two
parts in boldface. The first part represents a generalization that is typically
accurate but will not be repeated in the case at issue. The second portion
presents evidence in support of the economist’s prediction.

(C) This answer choice correctly describes the role of the first portion but
mistakenly states that the second part in boldface follows from this
generalization. The second statement in boldface presents evidence that
supports the opposite effect from that described in the first portion. Namely, the
economist claims that this time, stock prices will decrease rather than increase,
as would be usual.

(D) This answer choice incorrectly states that the first portion supports rather
incorrectly states that the second portion in boldface represents the economist's
prediction rather than evidence supporting it.

(E) This answer choice incorrectly states that the first statement will be repeated
in the case at issue. Remember, the economist argues that the usual pattern will
not hold this time. The second statement is correctly described as acknowledging
a circumstance in which the usual pattern will not hold.
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Re: Boldface Revision: Chief Economist: Usually, the release of economic  [#permalink]

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24 Feb 2016, 19:06
1
1st serves as a counter premise. it describes a pattern that occurs each time smth else happens.
then we have the conclusion - it won't be the case this quarter.
the last statement presents reasons why the conclusion is true.

A. The first acknowledges a consideration against the main conclusion of the chief economist; the second is that conclusion.
second is not the conclusion.

B. The first is a pattern of cause and effect that the chief economist predicts will not hold in the case at issue; the second offers a consideration in support of that prediction.
1 yes - the economist predicts that this time - the pattern will not be followed. second offers support for the prediction of the economist. looks good.

C. The first is a generalization that the chief economist accepts as true; the second is a consequence that follows from that generalization.
the economist does not accept it as true. he indeed specifies the pattern, but later mentions that it will not hold true this quarter.

D. The first is evidence that the chief economist provides in support of a certain prediction; the second is that prediction.
1st one is more like a counter premise.

E. The first is a pattern of cause and effect that the chief economist predicts will be repeated in the case at issue; the second acknowledges a circumstance in which that pattern would not hold.
1st - the economist says it will not be repeated this time..close - but not.
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Re: Boldface Revision: Chief Economist: Usually, the release of economic  [#permalink]

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28 Jul 2018, 07:13
The nonboldface is the conclusion. The BFs are the premises of the logic. B.

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Re: Boldface Revision: Chief Economist: Usually, the release of economic   [#permalink] 28 Jul 2018, 07:13
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