Despite strong employment figures in the Western economies over the past decade, business investment spending has remained stubbornly weak, as have productivity and wage growth.
These trends have coincided with a period of strong corporate profits and macroeconomic conditions that, in theory, should be favourable for investment. But instead, companies have not responded to the textbook stimuli for investment, either because they don’t see the long-term economic rationale for it, or because they are in less capital-intensive industries and simply do not think that they need any more buildings and equipment.
The problem, of course, is that without investment, productivity is not likely to increase, and without productivity growth, there is little reason to expect sustainable wage growth.
In the argument above, the two portions in boldface play which of the following roles?
A. The first presents an anticipated outcome; the second provides support for that outcome.
B. Both provide support for the position the argument disfavours.
C. Both provide evidence that supports the claim of the argument.
D. The first presents a coincidence that favours an expected outcome; the second presents that outcome.
E. The firsts presents a potential development that the argument ultimately refutes; the second supports that which the argument seeks to establish.