Difficulty: Easy
Correct Answer: if only Assumption II is implicit
Explanation:
Introduction / Context:
Linking a rate hike to deficit reduction assumes the hike is necessary (or at least effective) for closing the gap.
Concept / Approach:
I (rates “very low”) is not required; rates could be reasonable yet still insufficient to cover costs. II is necessary: without the hike, deficit would persist.
Step-by-Step Solution:
Evaluate I: Not essential to the rationale.Evaluate II: Essential—ties action to objective.
Final Answer:
if only Assumption II is implicit
Discussion & Comments