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Five years ago, as part of a plan to encourage citizens of

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 27 Aug 2009, 09:27
D for me too.

It weaken the statement by showing that the money in the special account came from the saving account that are already in the bank, it's not the new deposit money. So the saving money is not increase, it only transfer to a new account.

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 28 Aug 2009, 07:36
IMO D as it correctly weaken the argument that it is the govt plan that has led to the increase in savings amongst people of Lavaska..

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 22 Sep 2009, 07:36
D for sure

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 22 Sep 2009, 07:57
Yep D!

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 20 Oct 2011, 08:10
Guys ... this is a Gmat prep 2 question... Marked D as an option and it was incorrect...

OA is B according to Gmat Prep.....

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 21 Oct 2011, 06:34
abhi398 wrote:
Guys ... this is a Gmat prep 2 question... Marked D as an option and it was incorrect...

OA is B according to Gmat Prep.....

Hey

Can you check the OA again? B seems out of scope to me...
Premise: the government plans to increase the saving by introducing a special savings account
Premise: Millions of dollars have accumulated in the special accounts
Conclusion: so the government's plan is obviously working

Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. -- this choice does not undermine the conclusion. it focuses on the money withdrawing of the citizens --->irrelevant
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government -- the fact that workers cannot take advantage of the special savings accounts can't weaken the conclusion; other people can still benefit from the government's plan!
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder. -- the focus of this choice is interest rate, hence irrelevant
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. -- this choice seems ok to me.
E. Many of the economists who now claim that the government's plan has been successful criticized it when it was introduced. --this choice doesn't have any impact on the conclusion
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 22 Oct 2011, 11:50
Good question. +1 for D.

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 04 Nov 2011, 23:24
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Quote:
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.


Premise 1: 5 yrs ago, L's government plan to encourage L's citizens put more (increase) money in savings
Premise 2: Special savings account in which $3,000 a year can be saved with no tax on interest
Premise 3: If the money is withdrawn before the account holder read 65 age, interest will be taxed
Premise 4: Special accounts got million dollar
Conclusion: The plan (encouraging to put more money in bank) is good

Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. => quite attack, but they do not withdraw all money. Savings accounts are still efficient in accumulate money
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government. => totally irrelevant
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder. => out of scope. We are talking about special ones
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. => This one worked. It attack the plan, the money in banks did not increase significantly. Instead, it almost remained
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced. => Strengthen and quite out of scope
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 08 Nov 2011, 14:14
I go with D

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 13 Nov 2011, 17:26
D

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 26 Nov 2011, 20:14
D...it is

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 26 Nov 2011, 20:52
Its D
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 02 Dec 2014, 03:28
Hello from the GMAT Club VerbalBot!

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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mymba99 wrote:
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.


To solve the question, we need to understand the situation first. If we read the argument, we can decipher that situation is
A new Kind of savings account is introduced--> To increase savings.
Fact--Millions of $ are flowing in -->Conclusion-- Govt.'s plan is working
Pre-thinking possible Assumptions-- People are depositing money in new accounts, money is not flowing in those accounts from anywhere else.

Solution will be any statement that can weaken the above assumtions or the conclusion i.e if we can find that people are not depositing money or money is flowing in the savings account from other sources or something on these lines.

Note: You need not pin point exact assumptions and find exact answers. But this excercise will help you get near the answer.

Option A-- It states that some of the money is withdrawn from savings account. It might seem that it is weakening the conclusion that Govt's plan to increase savings is working..but in actual it is not. Even if some people have woithdrawn money from those accounts..it can quite be possible that a lot more is submitted...hence, in nutshell there is an increase. Also, the statement Millions of $ are flowing in is mentioned as a fact, unless we know for sure that withdrawn amount is equal or more than deposited, we can't weaken the net conclusion.


Option B-- The plan was for citizens, but it talks about workers. We don't know what part of population are workers. So the effect on the savings and hence conclusion can't eb fully determined.

Option C-- Irrelevant. In absence of any demographic data, we can't determine the effect of tax rates on savings

Option D-- This is the one we're trying to find here. IF the money in the tax saving accounts is coming from other savings accounts, then net savings are not increasing. This weakens the assumption that people are depositing fresh money in tax saving accounts.
Consider this-- Let's say-- Money in prev Saving accounts--100, In new from prev--40 Remaining in prev saving accounts-60.. So net savings-- still 100.. so Govt's plan is not working.
Hence this is the solution

Option E--This option if anything is strengthening the argument. If critics are praising the plan, that means somehow it must be working. We have to find a weakener.


Hope this helps
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 07 Mar 2015, 21:27
mymba99 wrote:
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.



what is the source of this question ? i have noticed a large incidents of confusing answers whenever the question is not from an official source.
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 06 Jun 2016, 09:38
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 15 Jul 2016, 22:10
mymba99 wrote:
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.


A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. - Incorrect. Irrelevant

B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government. - Incorrect. We already know that millions of dollars have accumulated in the special accounts. The fact that workers cannot take advantage of the special account does not weaken the fact that millions of dollars are already saved in the special accounts.

C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder. - Incorrect. Irrelevant

D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. - Correct. Millions of dollars were already saved in different accounts. Now, the amount is just transferred from different accounts to special account. The plan was to encourage savings. But here the savings are just transferred and the net savings has not increased.

E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced - Incorrect. Irrelevant

Answer: D

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 30 Jul 2016, 10:29
mymba99 wrote:
Five years ago, as part of a plan to encourage citizens of Levaska to increase the amount of money they put into savings, Levaska’s government introduced special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five. Millions of dollars have accumulated in the special accounts, so the government’s plan is obviously working.
Which of the following, if true, most seriously weakens the argument?

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.


My answer choices were down to B and D.

In B it says that the workers who already had savings were no longer are eligible for the special accounts' benefits. Hence workers would no longer bother to move the money. No usage of special accounts means this statement is irrelevant.

In D workers are using the special accounts but they are just transferring their previous savings to special accounts to get the benefits. Hence the Government's plan is not the reason for the workers' savings.

D is the answer choice for me.

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 24 Oct 2017, 18:28
Funny enough, none of the responses here are valid to eliminate B.

Imo, Both B and D are correct.

People saying B is irrelevant has the following arguments:

- B doesn't mention special saving accounts.
Yes it does, it says that workers CAN'T USE it. Thus the plan to get people TO USE IT fails.

- We don't know how many workers are % of the population.
Yea..confirmation bias right up the hoohoo. "Many Levaskans who already had long-term savings" indicates a huge % of the population? If we are going by assumptions in the Western world. I would argue that most of the population go to WORK and most of the people working have some sort of employee benefit savings account (defined benefit pension plan anyone?) By this logic, B actually wins.

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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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New post 22 Nov 2017, 08:17
A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.
The Levaskans withdrew some money- but still amount in saving account is increased before the plan was introduced. does not weaken

B. Workers in Levaska who already save money in long-term tax-free accounts that are offered through their workplace cannot take advantage of the special savings accounts introduced by the government.
Levaskan cannot take advantage is irrevelant- does not weaken

C. The rate at which interest earned on money deposited in regular savings accounts is taxed depends on the income bracket of the account holder.
Does not talk about any saving increased or decreased- does not weaken

D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts.
This does not increase the saving, because here Levaskans already had saving --- WEAKEN

E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced
NO details about Saving - Does not weaken

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Re: Five years ago, as part of a plan to encourage citizens of   [#permalink] 22 Nov 2017, 08:17

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