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High national inflation rates do not result in stagnation in

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High national inflation rates do not result in stagnation in [#permalink]

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High national inflation rates do not result in stagnation in the rate of economic growth. If they did, those nations that have the highest inflation rates should also demonstrate the lowest economic growth rates. In fact, if countries are ranked in order of inflation rates, with rate statistics adjusted so that nations are relatively comparable, no such correlation exists.

If the statements to the left are all true, which of the following must also be true?

A] Nations with high inflation rates tend to erect trade barriers.
B] It is impossible to compare economic growth rates meaningfully and reliably among countries.
C] Reducing national inflation rates through stricter government spending will not necessarily cause a lowering of that country’s individual rate of economic growth.
D] If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth.
E] Nations with the highest inflation rates never have comparably high economic growth rates.
[Reveal] Spoiler: OA
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Re: CR -grockit [#permalink]

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New post 18 Apr 2011, 12:01
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This passage tries to say that ecnomoic growth rates and inflation are not related. We must find an answer that best expresses this idea. To find an answer that must be true, we should not use any outside knowledge/assumption excpet those present in the passage.

A
Nations with high inflation rates tend to erect trade barriers.Nowhere in the passge are we told about trade barriers. Irrelevant answer
B
It is impossible to compare economic growth rates meaningfully and reliably among countries. Again, this is a generalization and we have no proof for this in the passage
C
Reducing national inflation rates through stricter government spending will not necessarily cause a lowering of that country’s individual rate of economic growth.Best answer. The bold part of this answer is a very good indicator of a correct answer. In thiscasetoo, this choice expresses the same idea as the passage
D
If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth.Not told in the passage
E
Nations with the highest inflation rates never have comparably high economic growth ratesThis is a generalization and we have no proof.
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Re: CR -grockit [#permalink]

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New post 18 Apr 2011, 21:11
Nice explanation
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Re: High national inflation rates do not result in stagnation in [#permalink]

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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 06 Feb 2014, 01:35
Can somebody explain,why C is correct?
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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 20 Jun 2014, 09:04
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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 20 Jun 2014, 09:16
skspark wrote:
I - inflation, G - growth
High national inflation rates do not result in stagnation in the rate of economic growth. high I do not stagnate G
If they did, those nations that have the highest inflation rates should also demonstrate the lowest economic growth rates. if did, then high I should show low G
In fact, if countries are ranked in order of inflation rates, with rate statistics adjusted so that nations are relatively comparable, no such correlation exists. if ranked according to I, with some adjustments, no correlation

If the statements to the left are all true, which of the following must also be true?
Must be True - so answer should not bring new ideas and must be within the bounds defined by above statements.

A] Nations with high inflation rates tend to erect trade barriers. Trade? OUT
B] It is impossible to compare economic growth rates meaningfully and reliably among countries.The closest thing was last statement, which DID NOT say this - OUT
C] Reducing national inflation rates through stricter government spending will not necessarily cause a lowering of that country’s individual rate of economic growth.In other words - Reducing I, might not lower G ---> so stating there is no correlation BINGO
D] If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth.population? OUT
E] Nations with the highest inflation rates never have comparably high economic growth rates.
never is too extreme;anything can happen by coincidence ex. I can get 800 @GMAT - OUT
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Re: High national inflation rates do not result in stagnation in [#permalink]

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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 21 Jul 2017, 01:28
skspark wrote:
High national inflation rates do not result in stagnation in the rate of economic growth. If they did, those nations that have the highest inflation rates should also demonstrate the lowest economic growth rates. In fact, if countries are ranked in order of inflation rates, with rate statistics adjusted so that nations are relatively comparable, no such correlation exists.

If the statements to the left are all true, which of the following must also be true?

A] Nations with high inflation rates tend to erect trade barriers.
B] It is impossible to compare economic growth rates meaningfully and reliably among countries.
C] Reducing national inflation rates through stricter government spending will not necessarily cause a lowering of that country’s individual rate of economic growth.
D] If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth.
E] Nations with the highest inflation rates never have comparably high economic growth rates.



What's the source of this question?

I had to choose C because no other answer really made any sense or had new information. But even C does not look like an answer.

Experts, please comment.
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Re: High national inflation rates do not result in stagnation in [#permalink]

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ShashankDave wrote:

I had to choose C because no other answer really made any sense or had new information. But even C does not look like an answer.

Experts, please comment.


Hi ShashankDave ,

I think C very well tells what we want.

The whole argument is saying high inflation rates do not have impact on economic growth.

This is what statement C is also saying. We can say that if I lower one, the other will not necessarily be impacted.

Hence, we are getting the crux of the argument out of C.
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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 15 Aug 2017, 09:12
abhimahna wrote:

Hi ShashankDave ,

I think C very well tells what we want.

The whole argument is saying high inflation rates do not have impact on economic growth.

This is what statement C is also saying. We can say that if I lower one, the other will not necessarily be impacted.

Hence, we are getting the crux of the argument out of C.


Hello Bruh,
Don't you think that "government spending" is out of scope? The answer should be "B"? Its not a strengthen question; it's a must be true question. So each and every word should be able to be mapped with the premise.
What is you opinion on this?
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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 15 Aug 2017, 10:30
gmatexam439 wrote:
Hello Bruh,
Don't you think that "government spending" is out of scope? The answer should be "B"? Its not a strengthen question; it's a must be true question. So each and every word should be able to be mapped with the premise.
What is you opinion on this?
Regards


Hello gmatexam439 ,

I think you have not understood the argument clearly.

It is saying High Inflation rates do not impact Economic Growth. Then it says There is no correlation between the two. Meaning they are entirely different things and are not impacting each other at all. (Underlined portion is the key to answer this question)

Now, C is saying the same. If I reduce one, other won't be impacted. I don't care how am I reducing it. I am bothered about reducing it. So, saying that "government spending" is OFS is wrong. It's just a way to reduce what I want to reduce.

B cannot be the answer because it says we cannot compare economic rates. Are you serious?? How does that matter or how does that relate to inflation rate. Hence, B is completely irrelevant.

C is an inference that has been drawn from what the conclusion is saying.

Does that make sense?
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Re: High national inflation rates do not result in stagnation in [#permalink]

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New post 15 Aug 2017, 11:43
abhimahna wrote:
gmatexam439 wrote:
Hello Bruh,
Don't you think that "government spending" is out of scope? The answer should be "B"? Its not a strengthen question; it's a must be true question. So each and every word should be able to be mapped with the premise.
What is you opinion on this?
Regards


Hello gmatexam439 ,

I think you have not understood the argument clearly.

It is saying High Inflation rates do not impact Economic Growth. Then it says There is no correlation between the two. Meaning they are entirely different things and are not impacting each other at all. (Underlined portion is the key to answer this question)

Now, C is saying the same. If I reduce one, other won't be impacted. I don't care how am I reducing it. I am bothered about reducing it. So, saying that "government spending" is OFS is wrong. It's just a way to reduce what I want to reduce.

B cannot be the answer because it says we cannot compare economic rates. Are you serious?? How does that matter or how does that relate to inflation rate. Hence, B is completely irrelevant.

C is an inference that has been drawn from what the conclusion is saying.

Does that make sense?


Yes Yes, you are correct. I mis-read the option "B". Its talking about the comparison between the different countries which is absolutely rubbish.

Thanks for the quick reply bro! Happy studying.
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Re: High national inflation rates do not result in stagnation in   [#permalink] 15 Aug 2017, 11:43
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