Answer the question on the basis of the given information. Businesses are suffering because of lack of money available for development loans.To help businesses,the government plans to modify the income- tax structure in order to induce individual tax payers to put a larger portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers. Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses?

Question

Answer the question on the basis of the given information.       Businesses are suffering because of lack of money available for development loans.To help businesses,the government plans to modify the income- tax structure in order to induce individual tax payers to put a larger portion of their incomes into retirement savings accounts, because as more money is deposited in such accounts, more money becomes available to borrowers.   Which of the following, if true, raises the most serious doubt regarding the effectiveness of the government's plan to increase the amount of money available for development loans for businesses?

Satt Academy · Accepted Answer

When levels of personal retirement saving increase, consumer borrowing always increases correspondingly. - Fact 1: Busines are suffering because of a lack of money available for development loans. 
Fact 2 : To help business,the government plans to modify the income - tax struture in order to induce individual taxpayers to put a larger portion of their income into retirement savings accounts.
Conclusion : Because as more money is deposited in such accounts, more money becomes available to borrowers.
Weakness : Do the people actually put money in their retirement accounts? This is not the right weakness as it’s mentioned in the fact section and not the conclusion (Hence is incorrect).
Right weakness : Money deposited into retiements accounts might not result is more money available to borrwers (mentioned in the conclusion).Scan through the choices which states this       –       (a) looks like the closest match.

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