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

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Director
Joined: 06 Jan 2008
Posts: 546
Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 11:46
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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special savings accounts in which up to \$3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five.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A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.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.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.
[Reveal] Spoiler: OA
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Manager
Joined: 28 Sep 2007
Posts: 210
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 11:53
1
KUDOS
I would say B. Because most of the people who save are workers, and most workers are not eligible for this special account if they already have an account at work.
VP
Joined: 10 Jun 2007
Posts: 1439
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 14:25
2
KUDOS
saravalli 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special savings accounts in which up to \$3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five.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.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.

D for me.
The amount of money saved is the same if D is true, so plan is not really working. No money has been saved.
SVP
Joined: 28 Dec 2005
Posts: 1558
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 14:29
D for me as well
Manager
Joined: 27 Jun 2007
Posts: 199
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 19:55
4
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saravalli 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.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.

I choose D.

I re-read each answer 3 times. To weaken the argument, you have to pick the answer that shows either a pre-existing condition allowing the current condition to exist, or an outside variable causing the current condition to come forth. D accomplishes that.
Director
Joined: 01 Jan 2008
Posts: 506
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 20:29
1
KUDOS
Great Question. D is best.
Manager
Joined: 31 Oct 2007
Posts: 115
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 20:39
1
KUDOS
Quote:
I re-read each answer 3 times. To weaken the argument, you have to pick the answer that shows either a pre-existing condition allowing the current condition to exist, or an outside variable causing the current condition to come forth. D accomplishes that.

Yes D is correct. It only states why govt plan is not working. That is million accumulate to these accounts from other accounts and not due to new savings.
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Intern
Joined: 26 Apr 2008
Posts: 49
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 20:47
I concur
Director
Joined: 30 Jun 2007
Posts: 786
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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14 May 2008, 21:20
Argument: Special account increased the savings.
Weaken: If increase in account is due to transfer of other savings deposits then will weakens the argument.

A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts. [Definitely does not address increase in savings - eliminate it]
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. [Strengthens the argument – eliminate it]
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. [Tax and Tax bracket is out of scope – eliminate it]
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced. [Out of scope – eliminate it]

Director
Joined: 06 Jan 2008
Posts: 546
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 09:44
OA is D. Thanks
Manager
Joined: 28 Apr 2008
Posts: 127
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 10:44
(-) to encourage L's citizen to put \$'s in savings act -> L's govt. Plan
Plan : 3K in account with No Tax due ON INTEREST unless \$'s withrdrawn before acc.holder reaches 65.
Millions in special accounts -> Govt's plan is working (conclusion)

May be the millions are coming from some rich folks that are close to retirement !

saravalli 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.
>> The aim of the govt was to encourage citizens to put more money into savings. So, if people keep withdrawing it weakens the argument.

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.
>> This only talks about workers in Levaska. What if only 1% of Levaska worked sounds crazy but we dont have information about workers vs the rest of population.
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.
>> Irrelevant.
>> Opposite of what we want.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.
>>Irrelevant.
Manager
Joined: 28 Apr 2008
Posts: 127
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 10:46
I was too quick to eliminate D. How silly
Current Student
Joined: 28 Dec 2004
Posts: 3357
Location: New York City
Schools: Wharton'11 HBS'12
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 10:56
yeah D for me too
SVP
Joined: 04 May 2006
Posts: 1892
Schools: CBS, Kellogg
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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15 May 2008, 23:38
saravalli wrote:
OA is D. Thanks

saravalli, I think D strengthen, rather than weaken the plan! Do you think so? for me, E just weaken the plan!
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Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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03 Aug 2008, 12:41
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.
E. Many of the economists who now claim that the government’s plan has been successful criticized it when it was introduced.
Director
Joined: 23 Sep 2007
Posts: 782
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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03 Aug 2008, 13:07
D
Retired Moderator
Joined: 18 Jul 2008
Posts: 970
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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04 Aug 2008, 14:08
D as well.
Intern
Joined: 03 Jun 2009
Posts: 30
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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25 Aug 2009, 08:18
is the OA correct for this one?????

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

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25 Aug 2009, 16:55
D, as it's just one kind of saving transforming into another...
Director
Joined: 05 Jun 2009
Posts: 817
WE 1: 7years (Financial Services - Consultant, BA)
Re: Five years ago, as part of a plan to encourage citizens of [#permalink]

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26 Aug 2009, 07:57
Yep D!
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Re: Five years ago, as part of a plan to encourage citizens of   [#permalink] 26 Aug 2009, 07:57

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