Critical Reasoning

Spending on research and development by United States businesses for 1984 showed an increase of about 8 percent over the 1983 level. This increase actually continued a downward trend evident since 1981 - when outlays for research and development increased 16.4 percent over 1980 spending. Clearly, the 25 percent tax credit enacted by Congress in 1981, which was intended to promote spending on research and development, did little or nothing to stimulate such spending.

The conclusion of the argument above cannot be true unless which of the following is true?

(A) Business spending on research and development is usually directly proportional to business profits.

(B) Business spending for research and development in 1985 could not increase by more than 8.3%.

(C) Had the 1981 tax credit been set higher than 25%, business spending for research and development after 1981 would have increased more than it did.

(D) In the absence of the 25% tax credit, business spending for research and development after 1981 would not have been substantially lower than it was.

(E) Tax credits market for specific investments are rarely effective in inducing businesses to make those investments.


Please reply with some explanations....difficult to choose between C and D

IMO D

Argument concludes that 25% tax credit did little or nothing. And this is based on the fact that there is decrease in percentage increase in spending.

So, what is the author assuming?

Author is assuming that if 25% credit were removed the spending wouldn't lower substantially.

A - some blah blah.... irrelevant
B - what happens in 1985 does not matter - irrelevant
C - what happens if credit had been more than 25% does not matter - irrelevant
E - again some blah blah - irrelevant

elaborating on C: We have to find author's assumption? The author says 25% credit had little or no effect. He has nothing to say about the number 25%. So, he is not assuming anything about it...i.e. he does not say anything like 25% was not good enough, was less or was more etc etc.

HTH!

IMO it's D.

Pls post OA.