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

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

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New post Updated on: 27 Jan 2019, 05:39
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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special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five.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A. A substantial number of Levaskans have withdrawn at least some of the money they had invested in the special accounts.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.

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.

Originally posted by mymba99 on 14 May 2008, 10:46.
Last edited by Bunuel on 27 Jan 2019, 05:39, edited 1 time in total.
Renamed the topic and edited the question.
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Re: Five years ago, as part of a plan to encourage citizens of Levaska to  [#permalink]

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New post 14 May 2008, 13:25
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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special savings accounts in which up to $3,000 a year can be saved with no tax due on the interest unless money is withdrawn before the account holder reaches the age of sixty-five.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.
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.


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

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New post 14 May 2008, 18:55
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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.
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.


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

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New post 14 May 2008, 19:39
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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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Re: Five years ago, as part of a plan to encourage citizens of Levaska to  [#permalink]

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New post 14 May 2008, 20:20
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]
D. Many Levaskans who already had long-term savings have steadily been transferring those savings into the special accounts. [Hold 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]

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

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Re: Five years ago, as part of a plan to encourage citizens of Levaska to   [#permalink] 27 Jan 2019, 05:34
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