Critical Reasoning

shobhitk wrote:Hi,

Can someone please help me explain why doesn't B hurt the effectiveness of governemnet's plan?

Althought the answer choice B states that this shortfall will be for an year, but doesn't this raise possibility that it might continue and hence hurt the gov.'s plan?

Always read very carefully for the exact nature of things like goals, purposes, objectives, etc.

Choice B implies that the plan might ultimately have bad results for the government budget. But that's not the point. It's not a plan to balance/fix the government budget; it's a plan to make more money available for businesses.

In fact, choice B explicitly mentions business expansion--implying that the plan WILL work. I.e., the plan WILL lead to business expansion, exactly as planned.
The government itself will end up as the loser, since the "minus" from the lost individual taxes will outweigh the "plus" from the business expansion. But, given the stated goal, we care only about the "plus", and not at all about the "minus". As long as the plus is there, the plan is successful.