Privatization of the large state enterprises that comprise the industrial sector in Russia is proceeding slowly , due to competition claims of ownership by various groups. Continued government subsidization of these enterprises creates large deficits, which drive up the inflation rate and causes the ruble's value to decline . It is therefore unlikely that the government will make the ruble freely convertible to western currencies until the question of ownership of state enterprise has been resolved.
If the authors prediction concerning the ruble is accurate , which of the following conclusions can most reliably be drawn ?
(A)The industrial sector accounts for nearly 50% of Russia's economic activity .
(B) Making the Russian ruble freely convertible to western currencies will cause the ruble's value to decline.
(C) The Russian government can indefinitely withstand the expense of subsidiary state.
(D) The Russian government is among the groups calming ownership of certain enterprise .
(E) The Russian government is under pressure from West to make the ruble freely convertible to Western currencies .
Can some one please help in showing how to reason this question. I am clueless inspite of reading the explanation from Kaplan book.
If the authors prediction concerning the ruble is accurate , which of the following conclusions can most reliably be drawn ?
(A)The industrial sector accounts for nearly 50% of Russia's economic activity .
(B) Making the Russian ruble freely convertible to western currencies will cause the ruble's value to decline.
(C) The Russian government can indefinitely withstand the expense of subsidiary state.
(D) The Russian government is among the groups calming ownership of certain enterprise .
(E) The Russian government is under pressure from West to make the ruble freely convertible to Western currencies .
Can some one please help in showing how to reason this question. I am clueless inspite of reading the explanation from Kaplan book.
