High national inflation rates do not result in stagnation in

Question

High national inflation rates do not result in stagnation in the rate of economic growth. If they did, those nations that have the highest inflation rates should also demonstrate the lowest economic growth rates. In fact, if countries are ranked in order of inflation rates, with rate statistics adjusted so that nations are relatively comparable, no such correlation exists.

If the statements to the left are all true, which of the following must also be true?

A] Nations with high inflation rates tend to erect trade barriers.
B] It is impossible to compare economic growth rates meaningfully and reliably among countries.
C] Reducing national inflation rates through stricter government spending will not necessarily cause a lowering of that country’s individual rate of economic growth.
D] If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth.
E] Nations with the highest inflation rates never have comparably high economic growth rates.

heygirl · Answer

This passage tries to say that ecnomoic growth rates and inflation are not related. We must find an answer that best expresses this idea. To find an answer that must be true, we should not use any outside knowledge/assumption excpet those present in the passage.

A
Nations with high inflation rates tend to erect trade barriers. Nowhere in the passge are we told about trade barriers. Irrelevant answer 
B
It is impossible to compare economic growth rates meaningfully and reliably among countries.  Again, this is a generalization and we have no proof for this in the passage 
C
Reducing national inflation rates through stricter government spending will  not necessarily  cause a lowering of that country’s individual rate of economic growth. Best answer. The bold part of this answer is a very good indicator of a correct answer. In thiscasetoo, this choice expresses the same idea as the passage 
D
If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth. Not told in the passage 
E
Nations with the highest inflation rates never have comparably high economic growth rates This is a generalization and we have no proof.

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karanwalia · Answer

Can somebody explain,why C is correct?

bschool17 · Answer

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bschool17 · Answer

never is too extreme;anything can happen by coincidence ex. I can get 800 @GMAT - OUT

ShashankDave · Answer

What's the source of this question?

I had to choose C because no other answer really made any sense or had new information. But even C does not look like an answer.

Experts, please comment.

abhimahna · Answer

Hi  ShashankDave  ,

I think C very well tells what we want.

The whole argument is saying high inflation rates do not have impact on economic growth.

This is what statement C is also saying. We can say that if I lower one, the other will not necessarily be impacted.

Hence, we are getting the crux of the argument out of C.

gmatexam439 · Answer

Hello Bruh,
Don't you think that "government spending" is out of scope? The answer should be "B"? Its not a strengthen question; it's a must be true question. So each and every word should be able to be mapped with the premise.
What is you opinion on this?
Regards

abhimahna · Answer

Hello  gmatexam439  ,

I think you have not understood the argument clearly.

It is saying High Inflation rates do not impact Economic Growth. Then it says  There is no correlation between the two . Meaning they are entirely different things and are not impacting each other at all. (Underlined portion is the key to answer this question)

Now, C is saying the same. If I reduce one, other won't be impacted. I don't care how am I reducing it. I am bothered about reducing it. So, saying that "government spending" is OFS is wrong. It's just a way to reduce what I want to reduce.

B cannot be the answer because it says we cannot compare economic rates. Are you serious?? How does that matter or how does that relate to inflation rate. Hence, B is completely irrelevant.

C is an inference that has been drawn from what the conclusion is saying.

Does that make sense?

gmatexam439 · Answer

Yes Yes, you are correct. I mis-read the option "B". Its talking about the comparison between the different countries which is absolutely rubbish.

Thanks for the quick reply bro! Happy studying.

VerbalBot · Answer

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High national inflation rates do not result in stagnation in

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