REASONING 3

玛莎丁丁

This one is a little bit tricky. Let us analyze it in more details.

Household Indebtedness was high preceding the recession. It was regarded as a cause of the recession but the author refuted it by saying the following:
1. the theorists' claims:
"high debt high assets" allocated as: most assets was owned by the affluent, most debts was owned by the low-income
the affluent didn't increase spending , the low-income decreased spending
——>together, these caused the recession.
2. However, the fact is:
most debts was owned by the affluent
3. Therefore,
the theorist' suggestioin was flawed

the question asks us to find Flaw in the argument.

A is correct because it points out that except from the affluent and low-income, there exists middle-income, which was not taken into account by the argument.
B doesn't have anything to do with what we need here. we don't care whether the total debt is higher or lower than the assets. What we care is who owns the assets and debts and what impacts that have on their spending.
C supports the theorists' claim. merely restates one of the premises.
D is not the right answer since we don't care how the affluent spent their money.
E is not the right answer since even if it is least likely, it could be. and we are not to say that E points out a Flaw in the reasoning.

Did I make it clear for u?