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# Which of the following, if true, is the most logical

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Director
Joined: 15 Aug 2005
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Location: Singapore
Which of the following, if true, is the most logical [#permalink]

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04 Oct 2005, 18:06
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Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootlandâ€™s tax system does not consistently favor borrowing over saving, for if it did, there would be no______

(A) tax relief in Grootland for those portions of a taxpayerâ€™s income, if any, that are set aside to increase that taxpayerâ€™s total savings
(B) tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
(C) tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
(D) taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
(E) taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings accounts
_________________

Cheers, Rahul.

Kudos [?]: 75 [0], given: 0

Director
Joined: 23 Jun 2005
Posts: 838

Kudos [?]: 87 [0], given: 1

GMAT 1: 740 Q48 V42
Re: CR - Republic of Grootland [#permalink]

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04 Oct 2005, 20:36
rahulraao wrote:
Which of the following, if true, is the most logical completion of the argument below?

The tax system of the Republic of Grootland encourages borrowing by granting its taxpayers tax relief for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Grootlandâ€™s tax system does not consistently favor borrowing over saving, for if it did, there would be no______

A for me!

(A) tax relief in Grootland for those portions of a taxpayerâ€™s income, if any, that are set aside to increase that taxpayerâ€™s total savings
means that there is tax relief for portions of income which eventually will become savings. So, by exempting those portions from taxes, the system now favors saving.

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GMAT Club Legend
Joined: 07 Jul 2004
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05 Oct 2005, 00:51
I'll take A. The rest of the options favor borrowing.

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Director
Joined: 15 Aug 2005
Posts: 793

Kudos [?]: 75 [0], given: 0

Location: Singapore

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05 Oct 2005, 04:07
&\$%@
You guys got it right! OA is A! I got it wrong!!!!!
_________________

Cheers, Rahul.

Kudos [?]: 75 [0], given: 0

05 Oct 2005, 04:07
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# Which of the following, if true, is the most logical

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