GMAT Critical Reasoning
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Source: OG
Level: 4
Neither a rising standard of living nor balanced trade, by itself, establishes a country's ability to compete in the international marketplace. Both are required simultaneously since standards of living can rise because of growing trade deficits and trade can be balanced by means of a decline in a country's standard of living.
If the facts stated in the passage above are true, a proper test of a country's ability to be competitive is its ability to
- A balance its trade while its standard of living rises
- B balance its trade while its standard of living falls
- C increase trade deficits while its standard of living rises
- D decrease trade deficits while its standard of living falls
- E keep its standard of living constant while trade deficits rise