The recent decline in the value of the dollar was triggered by a prediction of slower economic growth in the coming year. But that prediction would not have adversely affected the dollar had it not been for the government's huge budget deficit, which must therefore be decreased to prevent future currency declines.
Which of the following, if true, would most seriously weaken the conclusion about how to prevent future currency declines?
(A) The government has made little attempt to reduce the budget deficit.
(B) The budget deficit has not caused a slowdown in economic growth.
(C) The value of the dollar declined several times in the year prior to the recent prediction of slower economic
growth.
(D) Before there was a large budget deficit, predictions of slower economic growth frequently caused
declines in the dollar's value.
(E) When there is a large budget deficit, other events in addition to predictions of slower economic growth
sometimes trigger declines in currency value.
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budget vs dollar value
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atulmangal
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IMO D
argument says..that the
claim1:-prediction of slower economic growth causes Dollar decline
and then state that
claim 2:-prediction doesn't cause dollar decline if government do no have huge budget deficit
conclusion:-huge budget deficit must be decreased to prevent future currency declines
so in sum author put 3 claims out of which one is the main conclusion as stated above
Only Op D correctly weakens the link b/w claim2 and conclusion hence Op D
argument says..that the
claim1:-prediction of slower economic growth causes Dollar decline
and then state that
claim 2:-prediction doesn't cause dollar decline if government do no have huge budget deficit
conclusion:-huge budget deficit must be decreased to prevent future currency declines
so in sum author put 3 claims out of which one is the main conclusion as stated above
Only Op D correctly weakens the link b/w claim2 and conclusion hence Op D
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gmat7202011
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The argument states a relationship between deficit and $ decline.
Only Option D says they are not related.
Thank You
Only Option D says they are not related.
Thank You
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artistocrat
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There are two possible causes put forth here for the decline in the dollar. One is slow economic growth, the other is the budget deficit. The only answer that weakens the budget deficit reason and strengthens the economic growth reason is answer D. Usually, the GMAT likes you to address both rather than favor one, that is the reason for D...it is balanced.
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Target2009
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