The recent decline in the employment rate was spurred by predictions of slow economic growth in the coming year. However, those predictions would not have affected the employment rate if it had not been for the lack of capital reserves of major industries. So if major industries increase their capital reserves, the employment rate will not decline in the future.
Which of the following, if true, casts the most doubt on the validity of the argument above?
A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.
IMO B is the right answer. OA says C. Please help me understand why B is wrong.
Which of the following, if true, casts the most doubt on the validity of the argument above?
A. Major industry foresaw the drop in employment.
B. Some major industries had appreciable capital reserves.
C. An increase in labor costs could adversely affect the employment rate.
D. The government could pass legislation mandating that major industries set aside a fixed amount as capital reserves every year.
E. The drop in the employment rate was more severe this year than last.
IMO B is the right answer. OA says C. Please help me understand why B is wrong.
