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The downturn in the economy last year has prompted

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The downturn in the economy last year has prompted  [#permalink]

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New post 31 Jan 2017, 19:34
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Question Stats:

69% (01:31) correct 31% (01:51) wrong based on 484 sessions

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The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their discretionary spending, even if their jobs were secure, in anticipation of coming hard times. However, this prediction has not come to pass, since there has been no increase in the amount of money set aside by the general public in savings accounts.

Which one of the following is an assumption on which the argument depends?

A. The economy has not improved in recent months.
B.There has been no increase in the amount of money invested in stocks, certificates of deposit, or other savings vehicles.
C. Salaries have decreased as a result of the economic downturn.
D. No business sectors have seen growth in recent months.
E.Those who were laid off have been able to find other employment.

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Re: The downturn in the economy last year has prompted  [#permalink]

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New post 01 Feb 2017, 07:55
Economic downturn --> layoffs. Anticipating layoffs --> spending has decreased.
Conclusion: The prediction is not true as there is no increase in the money set aside for savings account.

Possible Assumption: People are not holding money in cash at their homes.

A. The economy has not improved in recent months. - Incorrect. Out of context.

B.There has been no increase in the amount of money invested in stocks, certificates of deposit, or other savings vehicles. - Correct.

C. Salaries have decreased as a result of the economic downturn. - Incorrect. Out of scope.

D. No business sectors have seen growth in recent months. - Incorrect. Out of scope.

E. Those who were laid off have been able to find other employment. - Incorrect. Out of scope.

Answer: B
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Re: The downturn in the economy last year has prompted  [#permalink]

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New post 01 Feb 2017, 11:14
B. There could be other means of saving money as mentioned in B.
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Re: The downturn in the economy last year has prompted  [#permalink]

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New post 01 Feb 2017, 17:51
Answer B as it defends by saying there has been no savings in other means
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Re: The downturn in the economy last year has prompted  [#permalink]

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New post 25 Oct 2018, 11:11
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Skywalker18 wrote:
The downturn in the economy last year has prompted many companies to make widely publicized layoffs, resulting in thousands of lost jobs. Economists predicted that these layoffs would cause people generally to cut back on their discretionary spending, even if their jobs were secure, in anticipation of coming hard times. However, this prediction has not come to pass, since there has been no increase in the amount of money set aside by the general public in savings accounts.

Which one of the following is an assumption on which the argument depends?

A. The economy has not improved in recent months.
B.There has been no increase in the amount of money invested in stocks, certificates of deposit, or other savings vehicles.
C. Salaries have decreased as a result of the economic downturn.
D. No business sectors have seen growth in recent months.
E.Those who were laid off have been able to find other employment.


B is the correct answer as argument assumes that people are only spending money and not saving money in form of deposits or certificates
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Re: The downturn in the economy last year has prompted &nbs [#permalink] 25 Oct 2018, 11:11
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