PT135.S1.Q17 > Question

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SECTION 4 · lr

Some people argue that negative news reports on the economy can hurt the economy, because those reports hurt people’s confidence in the economy, which can affect their spending.

The author concludes that negative news reports on the economy don’t hurt the economy, because spending trends correlate closely with people’s confidence in their own economic situations.

The author overlooks the possibility that negative news reports on the economy can decrease people’s confidence in their own economic situations; if this occurs, the reports can still lead to lower spending and damage to the economy.

This possibility doesn’t indicate how negative news reports can lead to lower spending. With (A), we have no reason to think that the reports affect confidence in one’s own economic situation.

The accuracy of reports is irrelevant, because we’re concerned with the effects that reports have on confidence levels in the economy. Reports can affect confidence without being accurate.

The argument concerns how news reports can affect people generally. There might be some people who don’t pay any attention to reports in the media; news reports may or may not have effects on people overall, regardless of the existence of people who don’t pay attention to media.

(D) points out how news reports might still harm the economy by decreasing people’s confidence in their own economic situations through decreasing confidence in the overall economy.

The comparative effects of a surprise slowdown vs. an expected slowdown has no impact on whether news reports can affect the economy.

PrepTest 135 - Section 1 - Question 17

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