Author: ErikaPrepScholar
Posted: Tue Oct 03, 2017 9:52 am (GMT -8)
Hi soudeh,
A key phrase here is "increase the upward pressure on real interest rates". The idea that current bank strategies do not "[allow] any opportunity for reduction" is supported by the last sentence of the passage, but there is no indication that current strategies are increasing real interest rates. We just know that current bank strategies causes real interest rates to remain high â in other words, they could be staying exactly where they are.
Answer choices being half right or almost right is a common trap on the GMAT. It's important to be sure that 100% of the answer choice is supported by the passage before selecting it!
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Erika John - Content Manager/Lead Instructor
http://gmat.prepscholar.com/gmat/s/
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Posted: Tue Oct 03, 2017 9:52 am (GMT -8)
Hi soudeh,
A key phrase here is "increase the upward pressure on real interest rates". The idea that current bank strategies do not "[allow] any opportunity for reduction" is supported by the last sentence of the passage, but there is no indication that current strategies are increasing real interest rates. We just know that current bank strategies causes real interest rates to remain high â in other words, they could be staying exactly where they are.
Answer choices being half right or almost right is a common trap on the GMAT. It's important to be sure that 100% of the answer choice is supported by the passage before selecting it!
_________________
Erika John - Content Manager/Lead Instructor
http://gmat.prepscholar.com/gmat/s/
Learn about our exclusive savings for BTG members(up to 25% off) and our 5 day free trial
Read our expert guides on the PrepScholar GMAT blog