I'm having a really tough time understanding the reasoning behind the correct answer to this question and was wondering whether anybody could help me out. It doesn't help that the stimulus revolves around economics -__-
When the rate of inflation...
Correct answer is C. I picked B. Thanks!!
PT 10, Section 4, Number 24 Forum
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helpplease
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PT 10, Section 4, Number 24
Last edited by helpplease on Mon Jun 04, 2012 6:58 pm, edited 1 time in total.
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Br3v
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rinkrat19
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Re: PT 10, Section 4, Number 24
Do not post the text of actual PT questions here. Reference it by test, section, problem.
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helpplease
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Re: PT 10, Section 4, Number 24
Sorry, didn't know!rinkrat19 wrote:Do not post the text of actual PT questions here. Reference it by test, section, problem.
Thanks, but I already saw their explanation. Didn't quite help me as much as I needed.
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foggynotion
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Re: PT 10, Section 4, Number 24
I think it's really just saying, to figure out how much by which investment X will decline, you subtract it's rate of return from the inflation rate. The most profitable investment will have the highest rate of return, so when you subtract that from the rate of inflation, it's going to have the lowest percentage of decline--any other investment would have a lower rate of return, which, when subtracted from the inflation rate, would have to result in a larger percentage of decline.
I hope this makes sense.
I hope this makes sense.
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bp shinners
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Re: PT 10, Section 4, Number 24
I answered in the ask the experts thread, but I'll address B here.helpplease wrote:I'm having a really tough time understanding the reasoning behind the correct answer to this question and was wondering whether anybody could help me out. It doesn't help that the stimulus revolves around economics -__-
When the rate of inflation...
Correct answer is C. I picked B. Thanks!!
B says that the investment is becoming less profitable. In order for something to become less profitable, I have to know two different points in time, and they have to be different (one higher, one lower). This stimulus is only talking about one point in time, so I can't say it's becoming less profitable.
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helpplease
- Posts: 130
- Joined: Fri Jun 01, 2012 2:12 pm
Re: PT 10, Section 4, Number 24
Thank you so much! Your explanation really helped!bp shinners wrote:I answered in the ask the experts thread, but I'll address B here.helpplease wrote:I'm having a really tough time understanding the reasoning behind the correct answer to this question and was wondering whether anybody could help me out. It doesn't help that the stimulus revolves around economics -__-
When the rate of inflation...
Correct answer is C. I picked B. Thanks!!
B says that the investment is becoming less profitable. In order for something to become less profitable, I have to know two different points in time, and they have to be different (one higher, one lower). This stimulus is only talking about one point in time, so I can't say it's becoming less profitable.
