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# While Governor Verdant has been in office, the state s

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Manager
Joined: 17 Apr 2009
Posts: 134
While Governor Verdant has been in office, the state s [#permalink]

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21 Jul 2009, 03:10
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While Governor Verdant has been in office, the state’s budget has increased by an average of 6 percent each year. While the previous governor was in office, the state’s budget increased by an average of 11.5 percent each year. Obviously, the austere budgets during Governor Verdant’s term have caused the slowdown in the growth in state spending.
Which of the following, if true, would most seriously weaken the conclusion drawn above?
(A) The rate of inflation in the state averaged 10 percent each year during the previous governor’s term in office and 3 percent each year during Verdant’s term.
(B) Both federal and state income tax rates have been lowered considerably during Verdant’s term in office.
(C) In each year of Verdant’s term in office, the state’s budget has shown some increase in spending over the previous year.
(D) During Verdant’s term in office, the state has either discontinued or begun to charge private citizens for numerous services that the state offered free to citizens during the previous governor’s term.
(E) During the previous governor’s term in office, the state introduced several so-called “austerity” budgets intended to reduce the growth in state spending.

Plz explain the ans.
Thx

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Director
Joined: 05 Jun 2009
Posts: 689
WE 1: 7years (Financial Services - Consultant, BA)

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21 Jul 2009, 03:18
IMO A.
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Senior Manager
Joined: 18 Jun 2009
Posts: 349
Location: San Francisco

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21 Jul 2009, 08:56
Agre on A - decrease in inflation means low budget
Senior Manager
Joined: 04 Jun 2008
Posts: 281

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21 Jul 2009, 09:05
Yes should be A

higher the inflation, more is the money spent. ie the value of money decreases, so if previously you could buy something with less money, due to high inflation you need to spend more to buy the same thing.

Thus if inflation decreased in verdant's term, state could still get the same value of money for lesser spending, and there should not be any slowdown in growth.
Intern
Joined: 06 Jul 2009
Posts: 31

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21 Jul 2009, 10:16

E weakens the conclusion that Verdant's term caused slower growth in state spending by indicating that during the previous governor's term, the state introduced austerity budgets to reduce growth in state spending. Therefore, the previous governor's term, not Verdant's term, CAUSED slower growth in state spending.
Senior Manager
Joined: 18 Jun 2009
Posts: 349
Location: San Francisco

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21 Jul 2009, 10:38
E cannot be the answer as the introduced austerity budgets were intended to reduce the spending growth but we dont know if it actually did.
Senior Manager
Joined: 17 Jul 2009
Posts: 266
Concentration: Nonprofit, Strategy
GPA: 3.42
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21 Jul 2009, 16:54
A for sure...negates the question's reason for saying spending slowed down...
Senior Manager
Joined: 16 Apr 2009
Posts: 286

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21 Jul 2009, 16:58

governor-verdant-79249.html

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Manager
Joined: 17 Apr 2009
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22 Jul 2009, 02:56
Why can't B be the ans.

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Re: CR doubt   [#permalink] 22 Jul 2009, 02:56
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# While Governor Verdant has been in office, the state s

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