bholakc wrote:
When news periodicals begin forecasting a recession, people tend to spend less money on discretionary purchases. Therefore, the perceived threat of recession decreases the willingness of people to purchase products that they regard as optional or luxury goods.
The argument above assumes that _
(A) there are more luxury goods available after a recession is forecast
(B) recently, the threat of recession has been increasingly publicized as news periodicals have grown more pervasive
(C) most people do not regularly read news periodicals
(D) people's perception of the threat of recession increases when news periodicals begin forecasting a recession
(Let's see. New Ps begin forecasting, then perception of threat increases, then people spend less $. If that's true, then it IS the case that the perception of the threat leads people to spend less $. This one is looking better than B.)
(E) the people who spent the most money before a recession was forecast were among those who curtailed their spending after the recession became apparent
( Hmm. This one sounds good, too. Maybe if the biggest spenders keep spending during the recession, then the overall amount of money being spent won't go down that much…although the argument doesn't really seem to depend on how much it goes down. Oh, wait: this says “after the recession began”—but the conclusion is about a “perceived threat of a future recession.” Nice trap!)
Manhattan 6th Edition revised the above topic.
When news periodicals begin forecasting a recession, people tend to spend less money on nonessential purchases. Therefore, the perceived threat of a future recession decreases the willingness of people to purchase products that they regard as optional or luxury goods.
Which of the following is an assumption on which the argument depends?
(A) People do not always agree as to which goods should be considered luxury goods.
(B) Many more people read news periodicals today than five years ago.
(C) Most people do not regularly read news periodicals.
(D) Decreased spending on nonessential goods does not prompt news periodicals to forecast a recession.
(E) At least some of the biggest spending consumers prior to the recession were among those who curtailed their spending after the recession began
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