LSAT 149 – Section 3 – Question 11

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Question
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Type Tags Answer
Choices
Curve Question
Difficulty
Psg/Game/S
Difficulty
Explanation
PT149 S3 Q11
+LR
Point at issue: disagree +Disagr
Causal Reasoning +CausR
A
1%
150
B
2%
151
C
0%
152
D
97%
163
E
0%
146
127
135
142
+Easier 147.456 +SubsectionMedium

Gabriella: By raising interest rates, the government has induced people to borrow less money and therefore to spend less, thereby slowing the country’s economy.

Ivan: I disagree with your analysis. The country’s economy is tied to the global economy. Whatever happens to the global economy also happens here, and the global economy has slowed. Therefore, the government’s action did not cause the economy’s slowdown.

Speaker 1 Summary
Gabriella claims that the government’s recent interest rate increase has slowed the economy. How so? By encouraging people to borrow more money and spend less money. (Gabriella is making an assumption that borrowing more and spending less slows the economy.)

Speaker 2 Summary
Ivan says that the interest rate increase didn’t slow the economy. In support, Ivan explains that whatever happens to the global economy is reflected in the country’s economy. Also, the global economy has slowed. Ivan sees this as an alternative explanation for the domestic slowdown.

Objective
We’re looking for a point of disagreement. Gabriella and Ivan disagree about whether the government’s interest rate increase caused the country’s economy to slow.

A
the economic slowdown in the country has caused people to spend less
Neither speaker talks about the effect the economic slowdown may have had on people’s behavior. Gabriella claims that lower spending helped to cause the slowdown, but doesn’t mention whether the slowdown could then further lower spending.
B
the economy of the country is tied to the economies of other countries
Ivan agrees that this is the case, but Gabriella doesn’t state an opinion. Gabriella only talks about the domestic economy, and says nothing about how the international economy might be involved.
C
raising interest rates caused a significant decrease in borrowing
Gabriella disagrees that this is the case, but Ivan doesn’t express an opinion. Gabriella thinks that raising interest rates increased, not decreased, borrowing. Ivan doesn’t talk about borrowing at all.
D
raising interest rates caused the country’s economy to slow
Gabriella thinks this is true and Ivan thinks it’s false, meaning that this is the point of disagreement. Gabriella’s conclusion is that the interest rate increase caused the slowdown. Ivan says that the global economy caused the slowdown, so interest rates are irrelevant.
E
the global economy has slowed
Ivan agrees with this, but Gabriella doesn’t state an opinion. Gabriella only talks about the domestic economy, and never mentions a belief that the global economy has slowed or not.

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