PrepTest 45, Section 2, Question 4
Columnist: Analysts argue that as baby boomers reach the age of 50, they will begin seriously planning for retirement. This will lead them to switch from being primarily consumers to being savers. Thus, these analysts conclude, more money will flow into the stock market, resulting in continued gains in stock prices. Analysts would stand to gain if this were true, but they are being overly optimistic. As consumption decreases, so will corporate earnings; therefore high stock prices will not be justified, and thus boomers' money will more likely flow into investments other than stocks.
Columnist: Analysts argue that as baby boomers reach the age of 50, they will begin seriously planning for retirement. This will lead them to switch from being primarily consumers to being savers. Thus, these analysts conclude, more money will flow into the stock market, resulting in continued gains in stock prices. Analysts would stand to gain if this were true, but they are being overly optimistic. As consumption decreases, so will corporate earnings; therefore high stock prices will not be justified, and thus boomers' money will more likely flow into investments other than stocks.
Columnist: Analysts argue that as baby boomers reach the age of 50, they will begin seriously planning for retirement. This will lead them to switch from being primarily consumers to being savers. Thus, these analysts conclude, more money will flow into the stock market, resulting in continued gains in stock prices. Analysts would stand to gain if this were true, but they are being overly optimistic. As consumption decreases, so will corporate earnings; therefore high stock prices will not be justified, and thus boomers' money will more likely flow into investments other than stocks.
Columnist: Analysts argue that as baby boomers reach the age of 50, they will begin seriously planning for retirement. This will lead them to switch from being primarily consumers to being savers. Thus, these analysts conclude, more money will flow into the stock market, resulting in continued gains in stock prices. Analysts would stand to gain if this were true, but they are being overly optimistic. As consumption decreases, so will corporate earnings; therefore high stock prices will not be justified, and thus boomers' money will more likely flow into investments other than stocks.
The columnist's argument does which one of the following?
attempts to undermine the analysts' argument by questioning the truth of its premises
attempts to undermine the analysts' argument by suggesting that the analysts present it for self-serving reasons
attempts to undermine the analysts' argument by drawing an alternative conclusion from the analysts' premises
argues that the analysts' conclusion is basically right, but suggests that it is somewhat too optimistic
argues in favor of the analysts' conclusion, but does so on the basis of a different body of evidence
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