PT130.S1.Q6

PrepTest 130 - Section 1 - Question 6

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Conclusion When a nation is on the brink of financial crisis, its government does not violate free-market principles if, in order to prevent economic collapse, it limits the extent to which foreign investors and lenders can withdraw their money. █████ ████ ███ █████ ██ ████ ██████ ████ ███ ███████ ███ █████ ██ █████ ███████ ██ █ ███████ ████████ ███ ███ ████ ████ ██ █████████ ███ ███████ ████ █████ ██ ███ █████ █████ ███ ██████ ████████ ████ ████ ███ ██ ████ ██ ████ ██ ███ ████ █████████ ████ █ ████████ ██ █ ████████

Summarize Argument

The author concludes that when a country faces a financial crisis, the government doesn’t violate free-market principles by limiting how much foreign investors and lenders can withdraw in order to prevent collapse. He supports this with an analogy, saying that the right to free speech doesn’t allow one to shout “Fire!” in a crowded theatre, and the harm caused by a rush of withdrawals can be just as dangerous as a stampede in a theatre.

Describe Method of Reasoning

The author supports his argument by analogizing with a similar case where similar principles are limited by the need to prevent harm. Just as free speech doesn't allow shouting "Fire!" in a crowded building because it's dangerous, the author argues that a free market shouldn't have to allow foreign investors and lenders to withdraw money during a financial crisis.

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6.

The argument does which one ██ ███ ██████████

a

tries to show ████ █ ███ ██ ██████████ ██ ███████ ██ █ ████████ ███ ██ █████ ██ ███████ ██ █ ███████ █████████ ████ ██ ███████ ██ █ ███████ ███

b

infers a claim ██ ███████ ████ ███ █████ ██ ████ █████ █████ ████ ███████ ████████ █████

c

presents numerous experimental ███████ ██ ████████ ███ █ ███████ █████████

d

attempts to demonstrate ████ ██ ███████████ ██ █ ██████████ ██ ██████ ██ ███████ ████ ██ █████ ██ ███████ █ ██████████ ████████ ██ ████ ██████████

e

applies an empirical ██████████████ ██ █████ █ ██████████ █████ █ ██████████ ████

Confirm action

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