hard · GMAT Verbal
The new tax law was intended to encourage companies to invest in domestic manufacturing. However, a survey shows that most companies have used their tax savings to buy back their own stock. Therefore, the new tax law has failed to achieve its primary objective.
Which of the following, if true, most weakens the argument?
- A handful of multinational firms announced plans to build new domestic factories within the next decade.
- Several economists predicted that the tax savings would be used for stock buybacks before the law was passed.
- The companies that bought back stock are among the largest employers in the country.
- Stock buybacks generally lead to an increase in a company's share price.
- Total investment in domestic manufacturing has reached a ten-year high since the law was passed.
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