Critics of Federal Reserve argue that hyperinflation is evident

Question

Critics of Federal Reserve argue that  hyperinflation is evident  because an increase in money supply by the Federal Reserve will lead to a devaluation of US dollars, making imports more expensive.  The reality cannot be more different . The increased capital flow would actually enable US companies to export high value products such as cars, increasing the demand for US dollar and improving the purchasing power of the average American.

The two portions in boldface play which of the following roles in the argument?

A. The first is the prediction that the argument on the whole supports; the second is a fact that will be true.
B. The first is the position that the argument opposes; the second is the evidence provided to refute that position.
C. The first is an evidence used to oppose a position; the second is that position.
D. The first is the prediction that the argument on the whole opposes; the second is another prediction that the argument believes will come true. 
E. The first is the position that the argument supports; the second is evidence cited to oppose that position.

abhishek31 · Answer

Hi, can anyone explain why b is a correct answer? And how is the argument trying to oppose the position presented by the first highlighted text?

xhaltar · Answer

A. The first is the prediction that the argument on the whole supports; the second is a fact that will be true.
B. The first is the position that the argument opposes; the second is the evidence provided to refute that position.
C. The first is an evidence used to oppose a position; the second is that position.
D. The first is the prediction that the argument on the whole opposes; the second is another prediction that the argument believes will come true. 
E. The first is the position that the argument supports; the second is evidence cited to oppose that position.

I'll try to explain what I thought.
I tried to identify the "Claim" and the "Evidence"

We need to see that "hyperinflation is evident" is a Claim, or a "position". It is NOT a prediction because of the word "argues".
Then A, and D are out => "prediction"

The Evidence is neither in the first bold part nor in the second. The Evidence is after the word "because".
Then C is out => Out of scope of the bold part

Then we can hesitate between B and E

BUT, in E, the arguments does not "Support" in the second part which is "cannot be more different". Thus, it opposes this point of view.
Then B is out => "Cannot be"

Hence, B seems more "logical".

Is this a clear way of reasoning ?

Kimber · Answer

gmat1393  - I don't think this is a safe question to have up, because answer B is not correct. In reality, none of the possible answers are correct. B says, "The first is the position that the argument opposes; the second is the evidence provided to refute that position."

There is no evidence contained in the bolded sentence, "The reality cannot be more different." This is more of a position or stance the author is taking against the first bolded section, but there is no evidence here.

Just some constructive feedback to consider, but happy to consider your argument on this as well.

aankit   abhishek31

CrackverbalGMAT · Answer

I believe the "right answer" should be  B , but this seems like a flawed question as  none of the answers are truly correct .

With Bold-faced questions, the most important thing to remember is that any statement in the argument MUST fit into one of four categories:  premises  that  support  the argument,  premises  that go  against  the argument, the  main conclusion  of the argument, any  other conclusion  that doesn't support the main one.

What the argument tells us is that the first statement is a conclusion (prediction, position, argument are all words that indicate a conclusion), and it goes against the main conclusion. Immediately, this  eliminates A, C, E . The argument doesn't support this position, and 'evidence' is used to describe premises (are are data, findings, considerations).

The second statement is the main conclusion itself, since it says what the argument believes. However, both B and D don't match this. B says that this statement is a premise, and D, although it calls it a conclusion, makes it a prediction rather than something that is already happening.

On hard Bold-faced questions, the lines between premise and conclusion can get somewhat blurred, which is why i'd pick B if I were to see this on the test. However, I still do not believe this is a valid question.

- Matoo

zeyneptuzun · Answer

This is what I thought at first as well, but the second bolded part says " the reality  cannot be more different". An evidence is always a fact, and the use of the word "reality" shows it to be a fact (evidence).

brianmontanaweb · Answer

First I begin by trying to identify what I believe the context of the phrase in the argument. The Fed is predicting that "hyperinflation is evident", the argument refutes the Fed prediction in the second statement then provides what they believe will be the outcome(prediction).

A is incorrect because the first phrase is not supported by the argument.
B is kinda correct for the first phrase, but I still see it as a prediction instead of a position. The second phrase is not evidence, so this option is eliminated.
C is incorrect because the phrase is not evidence, it's a prediction/claim/outcome.
E is incorrect since the argument does NOT support the Fed's prediction.

D is correct since it confirms the first phrase as a prediction and the second phrase begins by opposing the Fed prediction then providing the author's prediction.

anish777 · Answer

The definition of inflation states that the price of a few products increases over a period of time. If the purchasing power of the americans' increase over time, it has nothing to do with the inflation of the market.
Hence, I believe that A is the right answer choice. Can someone explain to me where I am going wrong here ?

VerbalBot · Answer

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Critics of Federal Reserve argue that hyperinflation is evident

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