[CR][Spending] HSPA posts

This topic has expert replies
User avatar
Legendary Member
Posts: 1101
Joined: Fri Jan 28, 2011 7:26 am
Thanked: 47 times
Followed by:13 members
GMAT Score:640

[CR][Spending] HSPA posts

by HSPA » Sun May 08, 2011 12:22 am
While Governor Verdant has been in office,the state's budget has increased by an average of 6 percent each year.While the previous governor was in office,the state's budget increased by an average of 11.5 percent each year.Obviously,the austere budget during Governor Verdant's term have caused the slowdown in the growth in state spending.

Which of the following,if true,would most seriously weaken the conclusion drawn above?
a) The rate of inflation in the state average 10 percent each year during the pervious governor's term in office and 3 percent each year during Verdant's term.
b) Both federal and state income tax rates have been lowered considerably during Verdant's term in office.
c) In each year of Verdant's term in office, the state's budget has shown some increase in spending over previous year.
d)During Verdant's term in office,the state has either discontinued or begun to charge private citizen for numerous services that the state offered free to citizens during the previous governor's term.
e)During the previous governor's term in office, the state introduced several so-called "austerity" budgets intended to reduce the growth in state spending.
First take: 640 (50M, 27V) - RC needs 300% improvement
Second take: coming soon..
Regards,
HSPA.

Junior | Next Rank: 30 Posts
Posts: 12
Joined: Sun Apr 17, 2011 9:47 pm
Thanked: 1 times

by Subeg Gill » Sun May 08, 2011 12:41 am
HSPA wrote:While Governor Verdant has been in office,the state's budget has increased by an average of 6 percent each year.While the previous governor was in office,the state's budget increased by an average of 11.5 percent each year.Obviously,the austere budget during Governor Verdant's term have caused the slowdown in the growth in state spending.

Which of the following,if true,would most seriously weaken the conclusion drawn above?
a) The rate of inflation in the state average 10 percent each year during the pervious governor's term in office and 3 percent each year during Verdant's term.
b) Both federal and state income tax rates have been lowered considerably during Verdant's term in office.
c) In each year of Verdant's term in office, the state's budget has shown some increase in spending over previous year.
d)During Verdant's term in office,the state has either discontinued or begun to charge private citizen for numerous services that the state offered free to citizens during the previous governor's term.
e)During the previous governor's term in office, the state introduced several so-called "austerity" budgets intended to reduce the growth in state spending.
A/D seems to be close contenders.
Whereas D seems to be dealing with cash inflow i.e. increase in govt profits through new charges
On the other hand,A discusses the condition for cashoutflow.
When rate of inflation is more,cost of things increases i.e. govt has to shell more cash for the same things.
IMO A

Legendary Member
Posts: 2330
Joined: Fri Jan 15, 2010 5:14 am
Thanked: 56 times
Followed by:26 members

by mundasingh123 » Sun May 08, 2011 4:38 am
Ans A
I Seek Explanations Not Answers