Economies in which a high percentage of resources are invested in rese

↑ % Investment in R &D = ↗↗ Growth in Long Term
Jp ↑ % > US ↑ % ( Investment )

Conc : US = Change Tax code to encourage savings and investment and discourage debt.

Prethink : How to weaken -

Even if US govt encourages savings by Tax cuts citizens keep on high consumption - thereby reducing savings & thereby Investment (for which they have to rely on external debts )

NOw Examine the options -

(A) Jp more focused on consumers than is research - Out of scope
(B) Class mobility, highly valued in American cultur - Out of scope
(C) Talks about " High consumption rates prosper in the short run " Irrelevant and completely out of scope and context of discussion as the highlighted part talks about long term
(D) strict limits on the deductability of interest, and increased allowance for research - Not exactly, we need to disprove that change in tax code will ahve any desirable effect.
(E) States that a greater % of people are over 40 as such the savings rate will increase without changes to the tax code., this clearly weakens the proposal/plan of the US Government.

Hencce IMHO (E)

(A) Japanese research is more focused on consumers than is research by American firms.
This however doesn't discredit the fact that Japanese are investing in research therefore out

(B) Class mobility, highly valued in American culture, is encouraged by a growing rather than a stagnant economy.
This adds stength to the fact Americans value consumption over research therefore out

(C) Studies have shown that countries with high consumption rates prosper in the short run.
This also lends strength to the fact that prosperity is guaranteed only for a worth while for longer instances we have to look for alternatives
therefore out

(D) Proposed changes to the tax code could involve strict limits on the deductability of interest, and increased allowance for research.
This doesn't guarantee the long term benefits therefore out

(E) Because a decreasing percentage of the United States is under 40, an age when savings are traditionally low, the savings rate will increase without changes to the tax code.
This adds strength to the fact that the dynamics of the savings will change which will in turn make the Americans to opt out of a tax regim therefore our answer

Therefore IMO E

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