medium · LSAT Logical Reasoning
Economists predicted that the new tax would cause consumer spending to decrease. However, in the three months following the tax's implementation, consumer spending actually increased.
Which one of the following, if true, most helps to resolve the apparent discrepancy described above?
- The tax was designed to fall on luxury items rather than on essential goods.
- Consumer spending had been declining steadily for several years before the tax.
- A broad rise in wages took effect at the same time the tax was implemented.
- Many of the economists who made the prediction have since revised their models.
- The tax raised significantly more revenue in its first quarter than officials had projected.
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