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# The Commerce Department recently put limits on machine-tool

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VP
Joined: 18 May 2008
Posts: 1258

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The Commerce Department recently put limits on machine-tool [#permalink]

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26 Mar 2009, 00:49
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Difficulty:

(N/A)

Question Stats:

100% (00:19) correct 0% (00:00) wrong based on 6 sessions

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The Commerce Department recently put limits on machine-tool imports from two countries whose exports of machine tools into the United States have been substantial. As a result of these restrictions, analysts predict that domestic sales of machine tools manufactured in the United States are bound to rise considerably, starting in the very near future.
Which of the following, if true, would be most likely to cause the analysts’ prediction to be inaccurate?

(A) A new tax bill that, if passed, would discourage investment in capital equipment such as machine tools is being studied and debated seriously in the United States Congress.
(B) United States companies’ orders for metal-cutting machines, which account for 75 percent of sales by the machine-tool industry, rose faster than orders for other types of machine tools during the past year.
(C) Worldwide orders for machine tools made in the United States dropped by more than 10 percent during the past year.
(D) Substantial inventories of foreign-made machine tools were stockpiled in the United States during the past year.
(E) Companies in the industrial sectors of many countries showed a significantly expanded demand for machine tools during the past year.

Kudos [?]: 552 [0], given: 0

Director
Joined: 04 Jan 2008
Posts: 893

Kudos [?]: 791 [0], given: 17

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26 Mar 2009, 02:58
Conclusion:

" domestic sales of machine tools manufactured in the United States are bound to rise considerably, starting in the very near future."

we have to show "domestic sales are not bound to rise in near future"

D Does that
Inventory already stock piling...sign of recession everywhere

Which of the following, if true, would be most likely to cause the analysts’ prediction to be inaccurate?

(A) A new tax bill that, if passed, would discourage investment in capital equipment such as machine tools is being studied and debated seriously in the United States Congress.---NO domestic sales here
(B) United States companies’ orders for metal-cutting machines, which account for 75 percent of sales by the machine-tool industry, rose faster than orders for other types of machine tools during the past year.--NO..OOS
(C) Worldwide orders for machine tools made in the United States dropped by more than 10 percent during the past year.--NO
(D) Substantial inventories of foreign-made machine tools were stockpiled in the United States during the past year.
(E) Companies in the industrial sectors of many countries showed a significantly expanded demand for machine tools during the past year.---NO
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Kudos [?]: 791 [0], given: 17

Current Student
Joined: 13 Jan 2009
Posts: 364

Kudos [?]: 146 [0], given: 1

Location: India

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27 Mar 2009, 14:06
Thru POE I also came down to D and it is the best option available. However, it is not the exact answer as this would only negate the near future prediction only as mentioned in "in the very near future".

Kudos [?]: 146 [0], given: 1

VP
Joined: 18 May 2008
Posts: 1258

Kudos [?]: 552 [0], given: 0

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28 Mar 2009, 01:07
OA is D,

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Manager
Joined: 11 Aug 2008
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Kudos [?]: 59 [0], given: 8

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27 Oct 2009, 23:08
Agree with D

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Manager
Joined: 11 Aug 2009
Posts: 121

Kudos [?]: 195 [0], given: 3

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28 Oct 2009, 06:03
Yes, D is it.

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Re: CR: commerce department   [#permalink] 28 Oct 2009, 06:03
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# The Commerce Department recently put limits on machine-tool

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