Privatization of the large state enterprises that comprise

Question

Privatization of the large state enterprises that comprise the industrial sector in Russia is proceeding slowly, due to competing claims of ownership by various groups. Continued government subsidization of these enterprises creates large deficits that drive up the inflation rate and cause the ruble's value to decline. It is therefore unlikely that the government will make the ruble freely convertible to Western currencies until the question of ownership of state enterprises has been resolved.

If the author's prediction concerning the ruble is accurate, which of the following conclusions can most reliably be drawn?

 
 (A) The industrial sector accounts for at least fifty percent of Russia's economic activity. 
 (B) Making the Russian ruble freely convertible to Western currencies will cause the ruble's value to decline. 
 (C) The Russian government can indefinitely withstand the expense of subsidiary state enterprises. 
 (D) The Russian government is among the groups claiming ownership of certain state enterprises. 
 (E) The Russian government is under pressure from the West to make the ruble freely convertible to Western currencies.

shubhangi · Answer

from all the answer choices .. A seems to fit ..
rest of the choices does'nt exactly go well with the situation.

shubhangi · Answer

.....now as u said paul i realised that B can be the right answer too

anandnk · Answer

B stands tall and well deep rooted.

Paul · Answer

Nowhere from the text can we assume that the industrial sector accounts for at least fifty percent of Russia's economic activity.
The first sentence says that privatization has been slowed because of ownership claims. The last sentence makes clear two opposites: privatization is opposite of state ownership. B) asserts that the Russian government has been under a policy of subsdization ( similar to state ownership ) which creates large deficits that drive up the inflation rate and  cause the ruble's value to decline . Therefore, opening up Russian's economy will cause the ruble's value to decline

asandeep · Answer

You got it buddies, B is indeed the answer.

joseph32 · Answer

I feel B is the answer. I guess i'm right.

Privatization of the large state enterprises that comprise

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards