In order to understand the dangers of the current real-estate bubble in Country Y, one has only to look to the real-estate bubble of the last decade in Country Z. In that country, incautious investors used the inflated value of their real estate as collateral in risky margin loans. When the real-estate market collapsed, many investors went bankrupt, creating a major recession. Country Y is in real danger of a similar recession if more stringent laws restricting margin loans are not enacted promptly.
The answer to which of the following questions would be most useful in evaluating the significance of the author’s claims?
(A) Was the real estate in Country Z located principally in rural areas or was it located in more urban communities?
(B) Could the bankruptcies in Country Z have been prevented by a private bailout plan by the nation’s banks?
(C) Does Country Y currently have any laws on its books regarding margin loans?
(D) Are there business ties and connections between Country Y and Country Z?
(E) Were there other factors in the case of Country Y that would make the comparison with Country Z less meaningful?