Ask Questions, Discuss Approaches & No Clutter

Curbing government spending has been demonstrated to raise the value of a country's

Open 1 Answers 154 Views
GMAT Timer00:00
Curbing government spending has been demonstrated to raise the value of a country's currency over time. However, many economists no longer recommend this policy. A currency of lesser value causes a country's exports to be more competitive in the international market, encouraging domestic industries and making the economy more attractive to foreign investment. The statements above most strongly support which of the following inferences?
(A) Limited government spending can also lead to a reduction in the national deficit.
(B) Curbing government spending can make a country's exports less competitive.
(C) Many economists now recommend higher levels of government spending.
 (D) An increase in the value of a currency will result in reduced government spending.
(E) Competitive exports indicate a weak currency

1 Answer

Payoj Kissan
option b is the right answer,since here is the scope is FDI and export and the word can make it more meaningful than option d which which is a direct statement.
answered Jun 21, 2015 by Associate (151 points)
Student Speaks

Jyotsna Mehta

Indian School of Business, Co'18

I am very thankful to Gmatxchange and would definitely recommend Gmatxchange mentors to all those students applying for MBA admissions

Your Tentative GMAT Score
Estimate your GMAT score.
The scorer helps you to determine your current level within a few questions you solve.Read More
Please log in or register to use the Scoring Feature
Confused about your profile & colleges, Get FREE profile evaluation today from over 10 consultants.
Follow us and get quick prep updates on Facebook