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

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Intern
Joined: 03 Dec 2012
Posts: 11
Location: United Kingdom
Concentration: Finance, International Business
GPA: 3.57
Re: Five years ago, as part of a plan to encourage citizens of  [#permalink]

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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special savings accounts in which up to \$3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five.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A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.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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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.

_________________

Insanity at its finest.

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

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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]

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03 Jan 2018, 04:40
tuanquang269 wrote:
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

Hi, I have one query on option D which states that Many Levaskans who already had long-term savings....we do t know the percentage of the population who have long term savings. What if the number of Levaskans with long term savings is a very small number, then the remainder of the larger population who deposited money leads us to believe that the government's plan worked. If the number of Levaskans with long term savings is large, then the government plan fails.
Re: Five years ago, as part of a plan to encourage citizens of &nbs [#permalink] 03 Jan 2018, 04:40

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

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