PrepTest 74, Section 3, Question 15
Economist: Many of my colleagues are arguing that interest rates should be further lowered in order to stimulate economic growth. However, no such stimulation is needed: the economy is already growing at a sustainable rate. So, currently there is no reason to lower interest rates further.
Economist: Many of my colleagues are arguing that interest rates should be further lowered in order to stimulate economic growth. However, no such stimulation is needed: the economy is already growing at a sustainable rate. So, currently there is no reason to lower interest rates further.
Economist: Many of my colleagues are arguing that interest rates should be further lowered in order to stimulate economic growth. However, no such stimulation is needed: the economy is already growing at a sustainable rate. So, currently there is no reason to lower interest rates further.
Economist: Many of my colleagues are arguing that interest rates should be further lowered in order to stimulate economic growth. However, no such stimulation is needed: the economy is already growing at a sustainable rate. So, currently there is no reason to lower interest rates further.
The reasoning in the economist's argument is questionable in that the argument
relies solely on the testimony of experts
confuses economic growth with what stimulates it
presumes that a need to stimulate economic growth is the only possible reason to lower interest rates now
takes what is merely one way of stimulating economic growth to be the only way of stimulating economic growth
concludes that a further reduction of interest rates would lead to unsustainable economic growth merely from the fact that the economy is already growing at a sustainable rate
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