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13 Mar 2014, 10:18
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C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
38% (02:21) correct
62%
(02:18)
wrong
based on 250
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The Central Banks mostly depend upon tinkering with interest rates for regulating the money supply and thereby inflation, momentarily ignoring the importance of growth and judicious supply of goods. They also cite rapid ballooning of the money supply and black money because of globalization as reasons for inclining toward interest rate cuts as the chief tools for smoothening a dented economy
Which of the following, if true, most weakens the argument above?
A: Economists across the world have proposed that in the near medium term the rate cuts will minimize the fiscal deficit than do higher exports.
B: Greenspan used effective rate- management for the successful re-vitalisation of the US economy
C: Franklin Roosevelt indulged in massive growth orientation of the economics even though he burdened the country with massive debts, but still pulled the country out of woods
D: Rate manoeuvres have an instant impact and rattle many vital sectors of the economy
E: Central Banks silently adhere to the politics of the governments rather than follow principles of Economics these days
Which of the following, if true, most weakens the argument above?
A: Economists across the world have proposed that in the near medium term the rate cuts will minimize the fiscal deficit than do higher exports.
B: Greenspan used effective rate- management for the successful re-vitalisation of the US economy
C: Franklin Roosevelt indulged in massive growth orientation of the economics even though he burdened the country with massive debts, but still pulled the country out of woods
D: Rate manoeuvres have an instant impact and rattle many vital sectors of the economy
E: Central Banks silently adhere to the politics of the governments rather than follow principles of Economics these days
OA: C
OE:
A: Near medium term is out of scope.
B: This is a strengthener
C: Correct answer; This precedence helps to deny the effectual impact of rate cuts in buttressing a lame economy
D: This is a strengthener
E: Out of scope
OE:
A: Near medium term is out of scope.
B: This is a strengthener
C: Correct answer; This precedence helps to deny the effectual impact of rate cuts in buttressing a lame economy
D: This is a strengthener
E: Out of scope
13 Mar 2014, 18:14
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A weaken statement attacks any part of the argument. The conclusion is "inclining toward interest rate cuts as the chief tools for smoothening a dented economy." If central banks adhere differently, then interest rate cuts are not the chief tools for smoothing an economy, but politicizing. Furthermore, interest rate cuts are synonymous to massive growth orientation because both are expansionary policies, thereby strengthening the argument in general. Respectfully speaking, if a weakening argument were made from a precedent, at least detail the move by Volcker's Federal Reserve in which they raised rates in order to restore a lame economy. IMO E.
13 Mar 2014, 23:04
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I was stuck between C and D, and I chose D over C.
Can somebody explain why is D wrong?
Can somebody explain why is D wrong?
