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Last year, Gambia received $2.5 billion in loans from the Internationa

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Last year, Gambia received $2.5 billion in loans from the Internationa [#permalink] New post   26 Oct 2017, 12:58
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Last year, Gambia received $2.5 billion in loans from the International Third World Banking Fund, and its Gross Domestic Product grew by 5%. This year Gambia has requested twice as much money from the ITWBF, and its leaders expect that Gambia’s GDP will rise by a full 10%.

Which of the following, if true, would LEAST undermine the expectations of Gambia’s leaders?

(A) The large 5% increase of last year is attributable to extraordinary harvests due to unusually good weather conditions.

(B) Gambia’s economy is not strong enough to absorb more than $3 billion in outside capital each year.

(C) Gambia does not have sufficient heavy industry to fuel an increase in its GDP of more than 6% per year.

(D) A provision of the charter of the International Third World Banking Fund prohibits the Fund from increasing loans to a country by more than 50% in a single year.

(E) A neighboring country experienced an increase of 5% in its Gross Domestic Product two years ago but an increase of only 3% in the most recent year.

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Re: Last year, Gambia received $2.5 billion in loans from the Internationa [#permalink] New post   26 Oct 2017, 19:16
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SajjadAhmad wrote:
Last year, Gambia received $2.5 billion in loans from the International Third World Banking Fund, and its Gross Domestic Product grew by 5%. This year Gambia has requested twice as much money from the ITWBF, and its leaders expect that Gambia’s GDP will rise by a full 10%. Which of the following, if true, would LEAST undermine the expectations of Gambia’s leaders?


(A) The large 5% increase of last year is attributable to extraordinary harvests due to unusually good weather conditions.
This choice weakens the argument since it indicates that the increase of GDP last year wasn't due to the loans but extraordinary harvests. Hence, the increase in loans this year is unlikely to contribute to the increase of GDP.

(B) Gambia’s economy is not strong enough to absorb more than $3 billion in outside capital each year.
This choice weakens the argument since it indicates that the loans of $5 billion won't have strong effect on the economy.

(C) Gambia does not have sufficient heavy industry to fuel an increase in its GDP of more than 6% per year.
This choice indicates that Gambia's GDP growth rate can't exceed the maximum 6% rate so the expection of 10% next year is unlikely to occur.

(D) A provision of the charter of the International Third World Banking Fund prohibits the Fund from increasing loans to a country by more than 50% in a single year.
This choice indicates that Gambia cant receive more loans from ITWBF as expected, so the expectation is unlikely to occur.

(E) A neighboring country experienced an increase of 5% in its Gross Domestic Product two years ago but an increase of only 3% in the most recent year.
Correct. The GDP growth of neighboring countries is irrelevant to Gambia's economy
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Re: Last year, Gambia received $2.5 billion in loans from the Internationa [#permalink] New post   26 May 2018, 04:26
broall wrote:
SajjadAhmad wrote:
Last year, Gambia received $2.5 billion in loans from the International Third World Banking Fund, and its Gross Domestic Product grew by 5%. This year Gambia has requested twice as much money from the ITWBF, and its leaders expect that Gambia’s GDP will rise by a full 10%. Which of the following, if true, would LEAST undermine the expectations of Gambia’s leaders?


(A) The large 5% increase of last year is attributable to extraordinary harvests due to unusually good weather conditions.
This choice weakens the argument since it indicates that the increase of GDP last year wasn't due to the loans but extraordinary harvests. Hence, the increase in loans this year is unlikely to contribute to the increase of GDP.

(B) Gambia’s economy is not strong enough to absorb more than $3 billion in outside capital each year.
This choice weakens the argument since it indicates that the loans of $5 billion won't have strong effect on the economy.

(C) Gambia does not have sufficient heavy industry to fuel an increase in its GDP of more than 6% per year.
This choice indicates that Gambia's GDP growth rate can't exceed the maximum 6% rate so the expection of 10% next year is unlikely to occur.

(D) A provision of the charter of the International Third World Banking Fund prohibits the Fund from increasing loans to a country by more than 50% in a single year.
This choice indicates that Gambia cant receive more loans from ITWBF as expected, so the expectation is unlikely to occur.

(E) A neighboring country experienced an increase of 5% in its Gross Domestic Product two years ago but an increase of only 3% in the most recent year.
Correct. The GDP growth of neighboring countries is irrelevant to Gambia's economy


Can you brief the difference between D and E?
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Re: Last year, Gambia received $2.5 billion in loans from the Internationa [#permalink] New post   26 May 2018, 10:33
teaserbae wrote:
broall wrote:
SajjadAhmad wrote:
Last year, Gambia received $2.5 billion in loans from the International Third World Banking Fund, and its Gross Domestic Product grew by 5%. This year Gambia has requested twice as much money from the ITWBF, and its leaders expect that Gambia’s GDP will rise by a full 10%. Which of the following, if true, would LEAST undermine the expectations of Gambia’s leaders?


(A) The large 5% increase of last year is attributable to extraordinary harvests due to unusually good weather conditions.
This choice weakens the argument since it indicates that the increase of GDP last year wasn't due to the loans but extraordinary harvests. Hence, the increase in loans this year is unlikely to contribute to the increase of GDP.

(B) Gambia’s economy is not strong enough to absorb more than $3 billion in outside capital each year.
This choice weakens the argument since it indicates that the loans of $5 billion won't have strong effect on the economy.

(C) Gambia does not have sufficient heavy industry to fuel an increase in its GDP of more than 6% per year.
This choice indicates that Gambia's GDP growth rate can't exceed the maximum 6% rate so the expection of 10% next year is unlikely to occur.

(D) A provision of the charter of the International Third World Banking Fund prohibits the Fund from increasing loans to a country by more than 50% in a single year.
This choice indicates that Gambia cant receive more loans from ITWBF as expected, so the expectation is unlikely to occur.

(E) A neighboring country experienced an increase of 5% in its Gross Domestic Product two years ago but an increase of only 3% in the most recent year.
Correct. The GDP growth of neighboring countries is irrelevant to Gambia's economy


Can you brief the difference between D and E?

The question asks us which statement would least weaken the expectations of Gambia's leaders. Keeping this in mind we have to search for a statement that either is irrelevant to the expectations or strengthens them.

D) Tells us that Gambia can't receive double the money from last year from the fund. As the expectations are based on the request of double the money they now aren't valid anymore. It makes sense that the growth will turn out to be lower than expected. Hence, this is a clear weakener.

E) Tells us that a neighboring state didn't experience the expected growth when the fund money it received doubled. However, we can't be sure that the neighboring country is similar to Gambia. Therefore, the argument is irrelevant in regards to the expectations of Gambia's leaders. This is the statement that least weakens their expectation and therefore we have found the correct answer.

Hope that helps :-)
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Re: Last year, Gambia received $2.5 billion in loans from the Internationa [#permalink]
26 May 2018, 10:33
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