when the rate of inflation exceeds the rate of return on the : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 20 Feb 2017, 19:27

### 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 the rate of inflation exceeds the rate of return on the

Author Message
TAGS:

### Hide Tags

CEO
Joined: 15 Aug 2003
Posts: 3460
Followers: 67

Kudos [?]: 869 [0], given: 781

when the rate of inflation exceeds the rate of return on the [#permalink]

### Show Tags

04 Oct 2003, 23:39
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 100% (00:00) wrong based on 4 sessions

### HideShow timer Statistics

when the rate of inflation exceeds the rate of return on the most profitable investment available , the difference between the two rates will be the percentage, by which,at a minimum, the value of any investment will decline. If in such circumstance the value of a particular investment declines by more than that percentage, it must be true that ................

Which one logically completes the argument?

A. The rate of inflation has risen

B. The investment in question is becoming less profitable

C. The investment in question is less profitable than the most profitable investment available

D. The rate of return on the most profitable investment available has declined

E. There has been a change in which particular investment happens to be the most profitable
If you have any questions
New!
Manager
Joined: 13 Aug 2003
Posts: 68
Location: India
Followers: 1

Kudos [?]: 1 [0], given: 0

### Show Tags

05 Oct 2003, 00:51
I would feel C is fine. A tough one but c is most logical as it says that the decline is more in investments which arent the most profitable. let me know the right answer and the reasons
CEO
Joined: 15 Aug 2003
Posts: 3460
Followers: 67

Kudos [?]: 869 [0], given: 781

### Show Tags

05 Oct 2003, 11:33
ngulati wrote:
I would feel C is fine. A tough one but c is most logical as it says that the decline is more in investments which arent the most profitable. let me know the right answer and the reasons

C is correct !

help me out with a question.

This is what i paraphrased:

The argument says that the " percentage change on the most profitable investment " is the MINIMUM percentage...so even if the percentage changes , it is still the most profitable investment..
In short, the percentage change does not matter..It can be the most profitable investment.
Thats why i selected B. why is B wrong?

thanks
praetorian
Intern
Joined: 12 Sep 2003
Posts: 31
Location: Peru
Followers: 0

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

Re: CR : Rate of Inflation [#permalink]

### Show Tags

05 Oct 2003, 16:10
The statement begins setting a standard: if the most profitable investment (i.e. 10%) is below the rate of inflation (i.e. 15%), any investment will decline by at least 5%, so, if the value of any investment is below this 5%, the investment is less profitable than the best one.
We're talking about constant rates. Moreover, you don't have any information suggesting that this particular investment ever had the most profitable rate.

C should be correct.
Re: CR : Rate of Inflation   [#permalink] 05 Oct 2003, 16:10
Similar topics Replies Last post
Similar
Topics:
Last year the rate of inflation was 1.2 percent, but for the 0 02 Jul 2013, 00:03
9 Last year the rate of inflation was 1.2 percent, but for the 14 14 Aug 2012, 23:13
10 High national inflation rates do not result in stagnation in 7 18 Apr 2011, 07:51
Last year the rate of inflation was 1.2%, but during the 3 29 Sep 2008, 15:17
When the rate of inflation exceeds the rate of return on the 7 04 Apr 2007, 03:54
Display posts from previous: Sort by

# when the rate of inflation exceeds the rate of return on the

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.