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Hey GMATClubbers! I'm going to be posting several sample questions in each verbal category. In addition to answers, any feedback would be appreciated. Too easy? Too unclear? Just right? Whatever you think! Thanks!
1. Most countries have run up historic deficits. While this has helped save public-sector jobs, there has not been much private-sector improvement. Government spending is a weak counter to economic cycles. Monetary policy is the only strong tool we have.
Which of the following facts best supports the author’s hypothesis?
(a) According to a historical survey, countries with smaller deficits have more stable long-term economies. (b) A state that carefully regulates private-sector economic activity has continually seen statewide job growth, despite the country’s deficit. (c) Public-sector jobs are far more plentiful and lucrative than private-sector jobs. (d) During past periods of economic duress, government expenditures have bolstered prosperity. (e) Enacting new fiscal policies requires vast monetary resources, often resulting in increased governmental debt.
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This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
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Hey GMATClubbers! I'm going to be posting several sample questions in each verbal category. In addition to answers, any feedback would be appreciated. Too easy? Too unclear? Just right? Whatever you think! Thanks!
1. Most countries have run up historic deficits. While this has helped save public-sector jobs, there has not been much private-sector improvement. Government spending is a weak counter to economic cycles. Monetary policy is the only strong tool we have.
Which of the following facts best supports the author’s hypothesis?
(a) According to a historical survey, countries with smaller deficits have more stable long-term economies.>>> Does not supports the argument (b) A state that carefully regulates private-sector economic activity has continually seen statewide job growth, despite the country’s deficit. >>> Correct (c) Public-sector jobs are far more plentiful and lucrative than private-sector jobs.>>> Does not support. (d) During past periods of economic duress, government expenditures have bolstered prosperity.>>> Never said. Out of scope (e) Enacting new fiscal policies requires vast monetary resources, often resulting in increased governmental debt.>>> No discussion on "what resulted in increased governmental debt ". Out of scope
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Conclusion is : Only strong Monetary policy is a counter to economic cycles.
Please help to explain why the OA is B! Is it because: the hypothesis: there has not been much private-sector improvement ->Does this mean the private-sector could be improved, but not much? Thank you.
Please help to explain why the OA is B! Is it because: the hypothesis: there has not been much private-sector improvement ->Does this mean the private-sector could be improved, but not much? Thank you.
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Since "private-sector economic activity" does not necessarily mean "monetary policy", I feel that B cannot be a valid answer. This question seems to be from an unauthentic source.
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.