Advanced Boldface Reasoning Practice Test

Business School Dean: We are all in agreement that we must cut unnecessary costs in order to afford our popular international study programs, a hallmark of our unique offering that prospective students know us for. But cutting the marketing budget would be a terrible idea; after all, our unique international programs cannot attract prospective students if we do not properly market them.

The portions highlighted in boldface play which of the following roles?

Recently, some economists have concluded that the major impediment to job growth in the U.S. is the enormous national debt. While many politicians would like to stimulate job growth by increasing government spending, these economists believe it will have the opposite effect and thus want to cut spending immediately. Historically, when total debt levels exceed 90% of domestic GDP, economic growth falls significantly causing job losses and overall economic malaise. The current U.S. debt is over 96% of GDP, so it is hard to argue the importance of decreasing this percentage and the economists are correct on this point. However, what these economists fail to understand is that cutting spending at this critical juncture would put too much pressure on a fragile economy. In the short term, spending should be left at current levels and revenue should be increased by increasing taxes on wealthy individuals and some corporations. As the economy strengthens, then spending can be decreased with the goal of reducing the debt percentage of GDP to a figure below 90%.

The portions in boldface play which of the following roles?