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12 Aug 2013, 14:42
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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
56% (02:11) correct
44%
(02:36)
wrong
based on 725
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During the Great Depression, Roosevelt’s New Deal expanded federal authority by creating several new government agencies designed to provide and administer relief to the country, which had been devastated by the 1929 stock market crash. Many agencies created under the New Deal were discontinued in subsequent decades, however, when policymakers grew uncomfortable with the amount of power wielded by the federal government. Additionally, a large number of economists at the time felt the market had recovered to the point that federal regulation had become more a hindrance to than a provider of economic stability.
The economists’ support of the discontinuation of New Deal programs rests on which of the following assumptions about the role of the federal government in the market?
A. Interference by federal government in the market can never create economic stability.
B. Federal regulation of the market is an emergency measure and, as such, should be temporary.
C. Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
D. Policymakers who discontinued New Deal programs were not the same policymakers who originally implemented them.
E. New Deal programs designed to provide economic relief actually perpetuated market instability.
The economists’ support of the discontinuation of New Deal programs rests on which of the following assumptions about the role of the federal government in the market?
A. Interference by federal government in the market can never create economic stability.
B. Federal regulation of the market is an emergency measure and, as such, should be temporary.
C. Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
D. Policymakers who discontinued New Deal programs were not the same policymakers who originally implemented them.
E. New Deal programs designed to provide economic relief actually perpetuated market instability.
Need help with option C.
12 Aug 2013, 22:53
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nitin6305
hi nitin,
firstly i will request you that whenever you post your question always post your doubt in spoiler like this:
Need help with option C
lets come to question:
ECONOMISTS VIEW:the market had recovered to the point that federal regulation had become more a hindrance to than a provider of economic stability.
-Interference by federal government in the market can never create economic stability.
WRONG.
#NEVER is too extreme for the answer choice to be correct.
-Federal regulation of the market is an emergency measure and, as such, should be temporary.
CORRECT.
-Agencies created under the New Deal routinely exercised control beyond what was stated in their charters.
WRONG
#This cant be assumption because whether control was beyond or less than stated in their charters=>this is not going to affect the conclusion because it was creating hindrance(as stated )=>so degree of control doesnt affects.
-Policymakers who discontinued New Deal programs were not the same policymakers who originally implemented them.
WRONG.
#Out Of Scope.
-New Deal programs designed to provide economic relief actually perpetuated market instability.
WRONG.
Argument says according to ECONOMISTS it created hindrance so they cant assume that new deal programmes perpetuated market stability.
hope it helps
14 Aug 2013, 10:48
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Think of answer C like this:
From argument we have : federal regulation had become more a hindrance to than a provider of economic stability.
If C were the case, then the Agencies created under the New Deal were actually routinely exercising control beyond what was stated in their charters since its inception. It may still continue to work, we need more evidence to support that agencies' control beyond it's limits is causing the hindrances.
Also, i believe even when there are two options which sound correct, you must pick the one which sounds better. Answer choice B talks about Federal Regulations and answer choice is talking about agencies.
From argument we have : federal regulation had become more a hindrance to than a provider of economic stability.
If C were the case, then the Agencies created under the New Deal were actually routinely exercising control beyond what was stated in their charters since its inception. It may still continue to work, we need more evidence to support that agencies' control beyond it's limits is causing the hindrances.
Also, i believe even when there are two options which sound correct, you must pick the one which sounds better. Answer choice B talks about Federal Regulations and answer choice is talking about agencies.
