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When people are worried about general economic conditions, they tend to spend less on consumer goods. Official government figures show that retail inventory levels throughout the economy have been increasing in recent months. However, consumer-confidence levels are currently the highest they’ve been in several years.
Any of the following, if true, would help to explain the apparent discrepancy described above EXCEPT:
(A) High interest rates tend to discourage consumers from buying products on credit that they otherwise could not afford.
(B) Businesses often increase production of consumer goods in anticipation of improving economic conditions.
(C) Consumer-spending levels tend to follow seasonal patterns.
(D) When the domestic currency’s value increases compared to that of foreign currencies, foreign products become less expensive for domestic consumers.
(E) Increased business spending generally precedes a decline in consumer-confidence levels.
Any of the following, if true, would help to explain the apparent discrepancy described above EXCEPT:
(A) High interest rates tend to discourage consumers from buying products on credit that they otherwise could not afford.
(B) Businesses often increase production of consumer goods in anticipation of improving economic conditions.
(C) Consumer-spending levels tend to follow seasonal patterns.
(D) When the domestic currency’s value increases compared to that of foreign currencies, foreign products become less expensive for domestic consumers.
(E) Increased business spending generally precedes a decline in consumer-confidence levels.
19 May 2022, 00:09
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Quote:
When people are worried about general economic conditions, they tend to spend less on consumer goods. Official government figures show that retail inventory levels throughout the economy have been increasing in recent months. However, consumer-confidence levels are currently the highest they’ve been in several years.
Sentence 1: When people are worried about general economic conditions, they tend to spend less on consumer goods. General statement.
Sentence 2: Official government figures show that retail inventory levels throughout the economy have been increasing in recent months. Fact. Contradictory condition #1.
Sentence 3: However, consumer-confidence levels are currently the highest they’ve been in several years. Fact. Contradictory condition #2.
Question:
Quote:
Any of the following, if true, would help to explain the apparent discrepancy described above EXCEPT:
Quite an open ended argument since Sentence 1 is only a general statement and says nothing about the present scenario (status of general economic conditions)
Took some time since few of the answer choices contradict either statement 1 or statement 2, and I haven't generally seen correct RP OAs contradicting the premise. But then realized the mistake I was making. I was making assumptions. Will try and list them as I go along with the explanations.
Quote:
(A) High interest rates tend to discourage consumers from buying products on credit that they otherwise could not afford.
Explains Contradictory condition #1. Doesn't exactly explain Contradictory condition #2. I had initially assumed that high interest rates contradict high consumer-confidence levels , thereby contradicting a premise. But there are many gaps I would have to bridge to reach that conclusion. Cross out A.Quote:
(B) Businesses often increase production of consumer goods in anticipation of improving economic conditions.
Explains Contradictory condition #1. Doesn't affect Contradictory condition #2. Cross out B.Quote:
(C) Consumer-spending levels tend to follow seasonal patterns.
Might explain Contradictory condition #1 and #2. Sort of a general statement again. Very slightly, but it can help to explain the discrepancy. Cross out C.Quote:
(D) When the domestic currency’s value increases compared to that of foreign currencies, foreign products become less expensive for domestic consumers.
Explains Contradictory condition #2. Doesn't explain Contradictory condition #1. Cross out D. Hope E works and is not a trap.Quote:
(E) Increased business spending generally precedes a decline in consumer-confidence levels.
Again, a general statement. But this doesn't affect Contradictory condition #1 or #2. That's your answer.
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