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# CR - State's Budget

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Senior Manager
Joined: 22 May 2003
Posts: 328

Kudos [?]: 173 [0], given: 0

Location: Uruguay

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28 Nov 2003, 13:23
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:16) correct 0% (00:00) wrong based on 1 sessions

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CR - State's Budget
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Kudos [?]: 173 [0], given: 0

Director
Joined: 13 Nov 2003
Posts: 958

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Location: Florida

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28 Nov 2003, 13:44
I go for E.

A and B talks about rate of inflation, federal/state rate cuts, but this is nowhere mentioned and can't be inferred.

E compares last governer's term with verdant's. It might have happened that austere budget during last governer's tenure is showing its results

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CEO
Joined: 15 Aug 2003
Posts: 3454

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Re: CR - State's Budget [#permalink]

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28 Nov 2003, 18:34
MartinMag wrote:
CR - State's Budget

D is best.

It doesnt matter what the earlier governor did , the spending was still

greater than this governor

If the govt started charging for services that it earlier provided free,

it doesnt have to spend for them anymore..in fact its getting a lot

of revenue from them.

thanks
praetorian

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Senior Manager
Joined: 22 May 2003
Posts: 328

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29 Nov 2003, 14:21

Maybe the logic behind this answer is that in the previous term the growth in spending had to be faster than in the later period because of the more rapid increase in prices. In the later period, since prices were not rising as fast as they were before, the state didn't need to increase the growth or pace of the state's spending.

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CEO
Joined: 15 Aug 2003
Posts: 3454

Kudos [?]: 919 [0], given: 781

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29 Nov 2003, 14:32
MartinMag wrote:

Maybe the logic behind this answer is that in the previous term the growth in spending had to be faster than in the later period because of the more rapid increase in prices. In the later period, since prices were not rising as fast as they were before, the state didn't need to increase the growth or pace of the state's spending.

this one is real tough!

i wonder how many test takers understand the relationship between

government spending and inflation.

Kudos [?]: 919 [0], given: 781

Senior Manager
Joined: 22 May 2003
Posts: 328

Kudos [?]: 173 [0], given: 0

Location: Uruguay

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29 Nov 2003, 14:53
praetorian123 wrote:
MartinMag wrote:

Maybe the logic behind this answer is that in the previous term the growth in spending had to be faster than in the later period because of the more rapid increase in prices. In the later period, since prices were not rising as fast as they were before, the state didn't need to increase the growth or pace of the state's spending.

this one is real tough!

i wonder how many test takers understand the relationship between

government spending and inflation.

Funny... that was precisely my thought also.

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SVP
Joined: 03 Feb 2003
Posts: 1603

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02 Dec 2003, 06:40
sure it is A

The previous governor: an increase is 11.5%, an inflation rate is 10%—an effective increase is 1.5%.
The today's governor: an increase is 6%, an inflation rate is 3%—an effective increase is 3%.

So who is to blame?

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02 Dec 2003, 06:40
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