Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1912:30 PM EST
-01:30 PM EST
Learn how Keshav, a Chartered Accountant, scored an impressive 705 on GMAT in just 30 days with GMATWhiz's expert guidance. In this video, he shares preparation tips and strategies that worked for him, including the mock, time management, and more
Nov 2007:30 AM PST
-08:30 AM PST
Learn what truly sets the UC Riverside MBA apart and how it helps in your professional growth
Nov 2001:30 PM EST
-02:30 PM IST
Learn how Kamakshi achieved a GMAT 675 with an impressive 96th %ile in Data Insights. Discover the unique methods and exam strategies that helped her excel in DI along with other sections for a balanced and high score.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2407:00 PM PST
-08:00 PM PST
Full-length FE mock with insightful analytics, weakness diagnosis, and video explanations!
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
64% (02:07) correct
36%
(02:16)
wrong
based on 1336
sessions
History
Date
Time
Result
Not Attempted Yet
Once consumers recognize that a period of inflation has begun, there is generally an increase in consumer spending. This increase can be readily explained by consumers’ desire not to postpone purchases that will surely increase in price. But during protracted periods of inflation, consumers eventually begin to put off making even routine purchases, despite the fact that consumers continue to expect price to rise and despite the fact that salaries also rise during inflationary periods.
Which one of the following, if true, most helps to explain the apparent inconsistency in consumer behavior described above?
(A) During times of inflation consumers save more money than they do in noninflationary periods.
(B) There is usually a lag between the leading economic indicators first signaling the onset of an inflationary period and consumers’ recognition of its onset.
(C) No generalization that describes human behavior will be true of every type of human behavior.
(D) If significant numbers of consumers are unable to make purchases, prices will eventually fall but salaries will not be directly affected.
(E) Consumers’ purchasing power decreases during periods of protracted inflation since salaries do not keep pace with prices.
Source: LSAT
Which one of the following, if true, most helps to explain the apparent inconsistency in consumer behavior described above?
(A) During times of inflation consumers save more money than they do in noninflationary periods.
(B) There is usually a lag between the leading economic indicators first signaling the onset of an inflationary period and consumers’ recognition of its onset.
(C) No generalization that describes human behavior will be true of every type of human behavior.
(D) If significant numbers of consumers are unable to make purchases, prices will eventually fall but salaries will not be directly affected.
(E) Consumers’ purchasing power decreases during periods of protracted inflation since salaries do not keep pace with prices.
Source: LSAT
sesamemochi
Joined: 12 May 2011
Last visit: 22 Apr 2014
Posts: 86
Given Kudos: 4
Location: United States
Concentration: Finance, Marketing
Schools: Haas '15 (D) Tuck '15 (D) Yale '15 (D) Wharton '15 (D) Booth '15 (A) Duke '15 (M) Anderson '15 (A)
GMAT 1: 730 Q47 V44
Schools: Haas '15 (D) Tuck '15 (D) Yale '15 (D) Wharton '15 (D) Booth '15 (A) Duke '15 (M) Anderson '15 (A)
GMAT 1: 730 Q47 V44
Posts: 86
28 Sep 2011, 17:26
Kudos
Bookmarks
B is incorrect because it does not resolve the paradox of consumers putting off purchases during protracted inflation periods.
E, however, does explain the apparent paradox. Even though consumers continue to make purchases during inflation periods, something happens during protracted inflation periods that does not allow consumers to. If they don't have enough money to continue making purchases during protracted inflation periods, as indicated in E, then this could explain the paradoxical consumer spending behavior.
E, however, does explain the apparent paradox. Even though consumers continue to make purchases during inflation periods, something happens during protracted inflation periods that does not allow consumers to. If they don't have enough money to continue making purchases during protracted inflation periods, as indicated in E, then this could explain the paradoxical consumer spending behavior.
28 Sep 2011, 22:29
Kudos
Bookmarks
Question is :
Why does consumers put off spending in protracted periods?
A - Saving - OOS
B- Timing is not an issue here -OOS
C- Very general statement. avoid this kind of general statements. They are gud for nothing.
D- May be true. Only if consumers want to lower prices.
E- If salaries do not keep pace with Rising prices, then one has to reduce spending for sure.
Why does consumers put off spending in protracted periods?
A - Saving - OOS
B- Timing is not an issue here -OOS
C- Very general statement. avoid this kind of general statements. They are gud for nothing.
D- May be true. Only if consumers want to lower prices.
E- If salaries do not keep pace with Rising prices, then one has to reduce spending for sure.
