GMAT Verbal Reasoning Practice Test 5

Question : 44 of 100

Marks: +1, -0

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

tax relief in Grootland for those portions of a taxpayer’s income, if any, that are set aside to increase that taxpayer’s total savings
tax relief in Grootland for the processing fees that taxpayers pay to lending institutions when obtaining certain kinds of loans
tax relief in Grootland for interest that taxpayers are charged on the unpaid balance in credit card accounts
taxes due in Grootland on the cash value of gifts received by taxpayers from banks trying to encourage people to open savings accounts
taxes due in Grootland on the amount that a taxpayer has invested in interest-bearing savings
accounts

Validate

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