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Which of the following, if true, is the most logical completion of the argument below? The tax system of the Kingdom of Eldoria encourages borrowing by providing its taxpayers tax deductions for interest paid on loans. The system also discourages saving by taxing any interest earned on savings. Nevertheless, it is clear that Eldoria's tax system does not consistently favor borrowing over saving, for if it did, there would be no __________.

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Correct answer marked below

tax deductions in Eldoria for those portions of a taxpayer's income, if any, that are set aside to increase that taxpayer's total savings

Correct

tax deductions in Eldoria for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans

tax deductions in Eldoria for interest that taxpayers are charged on the unpaid balance in credit card accounts

taxes due in Eldoria on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts

taxes due in Eldoria on the amount that a taxpayer has invested in interest-bearing savings accounts

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Explanation

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Official Explanation

Official

To complete the argument logically, we need to identify a statement that highlights a contradiction in the tax system of Eldoria. The argument states that the tax system encourages borrowing but discourages saving. If the system truly favored borrowing, there would be no tax deductions…

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Comments

5026Feb 1, 2025

thanks!

ArtemMar 6, 2025

Tricky wording but good practice

MohitaApr 22, 2025

got this wrong on my practice

MohammadSep 9, 2024

thanks!

What this question tests

What it tests

Whether you can complete the last sentence of an argument in a way that is logically consistent with it.

Common trap

Choosing an option that sounds plausible but contradicts the argument or introduces new information.