When the rate of inflation exceeds the rate of return on the most profitable investment available, the difference bet...

Balwant May 11, 2020

Why are the other answer choices incorrect?

Hi, I know that the correct answer is C, but I would also like to know why the other answer choices are incorrect? Can someone please explain?

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Veda-Bhadharla June 22, 2020

I have the same question! Could someone please help?

BenMingov June 27, 2020

Hi Balwant and Veda!

I think an easy way to think about the answer choices that are incorrect here is that they are not "must be true". When we are completing the argument, we should try to select the answer choice that is supported by the facts presented.

A, B, D, and E are all answer choices that the facts do not support. You can try for yourselves to prove one of them right based on the info given, but you will run into difficulties as there is no information available to support them. However, as you see with C, considering the value of this investment would decline more than the best investment, well then it wasn't the best investment to begin with!

I hope this helps. Please let me know if you have any other questions.