We need something that raises the
most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses:-
(A) When levels of personal retirement savings increase, consumer borrowing always increases correspondingly – weakener – as it says if people put bigger portions of their incomes into their retirement savings account, then, they are more likely to borrow money. Thus, less money will be available for loans for businesses. (B) The increased tax revenue the government would receive as a result of business expansion would not offset the loss in revenue from personal income taxes during the first year of the plan – irrelevant comparison
(C) Even with tax incentives,
some people will choose not to increase their levels of retirement savings – trap – irrelevant – classic statistical data trap
(D) Bankers generally will not continue to lend money to businesses whose prospective earnings are insufficient to meet their loan repayment schedules – strengthener – removes a potential hindrance in the success of the plan
(E) The modified tax structure would give all taxpayers, regardless of their incomes, the
same tax savings for a given increase in their retirement savings – irrelevant – we don’t care about how tax savings people enjoy
Boil it down:
We have a problem
Government proposes a plan to solve the problem
Conclusion : the solution will solve the problem
Gap:
· Will the solution really solve the problem?
· Will the solution aggravate the problem?