BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Budget & Trade deficits

Expert replies
by joyseychow » Tue Oct 27, 2009 5:03 am
Large national budget deficits do not cause large trade deficits. If they did, countries with the largest budget deficits would also have the largest trade deficits. In fact, when deficit figures are adjusted so that different countries are reliably comparable to each other, there is no such correlation.
If the statements above are all true, which of the following can properly be inferred on the basis of them?
(A) Countries with large national budget deficits tend to restrict foreign trade.
(B) Reliable comparisons of the deficit figures of one country with those of another are impossible.
(C) Reducing a country's national budget deficit will not necessarily result in a lowering of any trade deficit that country may have.
(D) When countries are ordered from largest to smallest in terms of population, the smallest countries generally have the smallest budget and trade deficits.
(E) Countries with the largest trade deficits never have similarly large national budget deficits.
Join the discussion
Source: — Critical Reasoning |

by 2010gmat » Tue Oct 27, 2009 5:46 am
Large national budget deficits do not cause large trade deficits. If they did, countries with the largest budget deficits would also have the largest trade deficits. In fact, when deficit figures are adjusted so that different countries are reliably comparable to each other, there is no such correlation.

IMO C
Join the discussion

by delhiboy1979 » Tue Oct 27, 2009 6:00 am
AGree with C, there is no correlation
Join the discussion

it seem to be it!

by kiennguyen » Tue Oct 27, 2009 7:56 pm
one more C
Join the discussion

by Testluv » Tue Oct 27, 2009 8:42 pm
Large national budget deficits do not cause large trade deficits. If they did, countries with the largest budget deficits would also have the largest trade deficits. In fact, when deficit figures are adjusted so that different countries are reliably comparable to each other, there is no such correlation.
If the statements above are all true, which of the following can properly be inferred on the basis of them?
(A) Countries with large national budget deficits tend to restrict foreign trade.
(B) Reliable comparisons of the deficit figures of one country with those of another are impossible.
(C) Reducing a country's national budget deficit will not necessarily result in a lowering of any trade deficit that country may have.
(D) When countries are ordered from largest to smallest in terms of population, the smallest countries generally have the smallest budget and trade deficits.
(E) Countries with the largest trade deficits never have similarly large national budget deficits.
Hi joyseychow,

In inference questions, you should learn to avoid choices that use extreme language, and to be partial to choices that use more tentative language.

Chioce B uses the word "impossible".
Choice D talks about the "largest" and "smallest" nations.
Choice E uses the word "never".

All of this is extreme language. For that reason these choices are not likely to be correct.

In contrast, choice A says "tend to" while choice C (incidentally, the correct answer) says "not necessarily". Because these choices are using
English more tentatively, they are more likely to be correct.

I am not saying that choices that use extreme language in inference questions are automaticlly incorrect. But, in order for such a choice to be correct, the language in the passage would have to be equally as extreme, and that is fairly rare.

You can also apply this to questions that ask for "an assumption on which the argument depends". In these questions, the argument is not likely to be so bold as to depend on an extreme assumption.
Kaplan Teacher in Toronto
Join the discussion

by mehravikas » Wed Oct 28, 2009 1:27 pm
IMO - C
Join the discussion

by joyseychow » Thu Oct 29, 2009 6:18 am
Testluv wrote:
Large national budget deficits do not cause large trade deficits. If they did, countries with the largest budget deficits would also have the largest trade deficits. In fact, when deficit figures are adjusted so that different countries are reliably comparable to each other, there is no such correlation.
If the statements above are all true, which of the following can properly be inferred on the basis of them?
(A) Countries with large national budget deficits tend to restrict foreign trade.
(B) Reliable comparisons of the deficit figures of one country with those of another are impossible.
(C) Reducing a country's national budget deficit will not necessarily result in a lowering of any trade deficit that country may have.
(D) When countries are ordered from largest to smallest in terms of population, the smallest countries generally have the smallest budget and trade deficits.
(E) Countries with the largest trade deficits never have similarly large national budget deficits.
Hi joyseychow,

In inference questions, you should learn to avoid choices that use extreme language, and to be partial to choices that use more tentative language.

Chioce B uses the word "impossible".
Choice D talks about the "largest" and "smallest" nations.
Choice E uses the word "never".

All of this is extreme language. For that reason these choices are not likely to be correct.

In contrast, choice A says "tend to" while choice C (incidentally, the correct answer) says "not necessarily". Because these choices are using
English more tentatively, they are more likely to be correct.

I am not saying that choices that use extreme language in inference questions are automaticlly incorrect. But, in order for such a choice to be correct, the language in the passage would have to be equally as extreme, and that is fairly rare.

You can also apply this to questions that ask for "an assumption on which the argument depends". In these questions, the argument is not likely to be so bold as to depend on an extreme assumption.
Thanks for the tip!! It makes sense :D
Join the discussion