The Commerce Department recently put limits on machine-tool imports from two countries whose exports of machine tools into the United States have been substantial. As a result of these restrictions, analysts predict that domestic sales of machine tools manufactured in the United States are bound to rise considerably, starting in the very near future.
Which of the following, if true, would be most likely to cause the analysts’ prediction to be inaccurate?
(A) A new tax bill that, if passed, would discourage investment in capital equipment such as machine tools is being studied and debated seriously in the United States Congress.
(B) United States companies’ orders for metal-cutting machines, which account for 75 percent of sales by the machine-tool industry, rose faster than orders for other types of machine tools during the past year.
(C) Worldwide orders for machine tools made in the United States dropped by more than 10 percent during the past year.
(D) Substantial inventories of foreign-made machine tools were stockpiled in the United States during the past year.
(E) Companies in the industrial sectors of many countries showed a significantly expanded demand for machine tools during the past year.
**Please provide reasoning for your answers.
Which of the following, if true, would be most likely to cause the analysts’ prediction to be inaccurate?
(A) A new tax bill that, if passed, would discourage investment in capital equipment such as machine tools is being studied and debated seriously in the United States Congress.
(B) United States companies’ orders for metal-cutting machines, which account for 75 percent of sales by the machine-tool industry, rose faster than orders for other types of machine tools during the past year.
(C) Worldwide orders for machine tools made in the United States dropped by more than 10 percent during the past year.
(D) Substantial inventories of foreign-made machine tools were stockpiled in the United States during the past year.
(E) Companies in the industrial sectors of many countries showed a significantly expanded demand for machine tools during the past year.
**Please provide reasoning for your answers.
