It is currently 17 Oct 2017, 03:17

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# When military spending increased in Country X ten years ago,

Author Message
Manager
Joined: 21 May 2011
Posts: 241

Kudos [?]: 271 [0], given: 8

When military spending increased in Country X ten years ago, [#permalink]

### Show Tags

10 Jul 2011, 19:58
00:00

Difficulty:

(N/A)

Question Stats:

64% (00:45) correct 36% (00:33) wrong based on 33 sessions

### HideShow timer Statistics

When military spending increased in Country X ten years ago, citizens started spending a smaller percentage of their disposable income on luxury items. When military spending recently decreased, spending on luxury items increased back to its initial level. The perceived threat of war, therefore, persuades consumers to spend less on luxuries than they otherwise would.

The argument above depends on which of the following assumptions?

A. The perceived threat of war has increased over the years.
B. Most citizens supported the decrease in military spending.
C. Citizen's perceptions of the threat of war depend on the amount of military spending by Country X.
D. The people who spent the most money on luxury items when military spending was low were the ones who supported low levels of military spending.
E. There are fewer luxury goods available when military spending increases.

Kudos [?]: 271 [0], given: 8

Manager
Joined: 14 Mar 2011
Posts: 198

Kudos [?]: 129 [0], given: 21

Re: CR - Assumption 700 level [#permalink]

### Show Tags

11 Jul 2011, 00:55
The answer should be C. the premise states that 10 years ago military spending increased and subsequently spending on luxury items decreased. Then in last sentence the author links the phenomenon with perceived threat of war. so author assumes citizens of country X correlate high military spending with threat of war.

Kudos [?]: 129 [0], given: 21

Manager
Joined: 14 Feb 2010
Posts: 159

Kudos [?]: 112 [0], given: 8

Location: Banaglore
Re: CR - Assumption 700 level [#permalink]

### Show Tags

11 Jul 2011, 01:09
bschool83 wrote:
When military spending increased in Country X ten years ago, citizens started spending a smaller percentage of their disposable income on luxury items. When military spending recently decreased, spending on luxury items increased back to its initial level. The perceived threat of war, therefore, persuades consumers to spend less on luxuries than they otherwise would.

The argument above depends on which of the following assumptions?

A. The perceived threat of war has increased over the years.
B. Most citizens supported the decrease in military spending.
C. Citizen's perceptions of the threat of war depend on the amount of military spending by Country X.
D. The people who spent the most money on luxury items when military spending was low were the ones who supported low levels of military spending.
E. There are fewer luxury goods available when military spending increases.

I will go with C . what is the OA?

Kudos [?]: 112 [0], given: 8

Senior Manager
Joined: 17 May 2010
Posts: 287

Kudos [?]: 55 [0], given: 7

GMAT 1: 710 Q47 V40
Re: CR - Assumption 700 level [#permalink]

### Show Tags

13 Jul 2011, 07:09
I say the answer is C. Spending on luxury items is inversely proportional to military spending. Military spending is tied to perceived threat of war. C connects the two.
_________________

If you like my post, consider giving me KUDOS!

Kudos [?]: 55 [0], given: 7

Moderator
Joined: 01 Sep 2010
Posts: 3355

Kudos [?]: 9040 [0], given: 1152

Re: CR - Assumption 700 level [#permalink]

### Show Tags

31 Jul 2011, 11:54
C for me
_________________

Kudos [?]: 9040 [0], given: 1152

Re: CR - Assumption 700 level   [#permalink] 31 Jul 2011, 11:54
Display posts from previous: Sort by