Subject: English 0 Likes

Louis: The financial industry will suffer greatly from the new

Updated on 09/06/2024

Louis: The financial industry will suffer greatly from the new government regulations over derivatives. Compliance with these regulations will cost the industry $5.5 million annually because companies in the industry will have to double the size of their proxy statements in order to disclose all the required information.
Companies in the industry will then lose profits and have to lay off other employees. Therefore, these regulations will have an adverse
effect on the nation’s economy. Peter: The $5.5 million that companies in the finance industry will have to spend will be profits for other types of companies in the private sector. Profits and jobs may be lost in the finance industry, but they will be gained by other companies.

Peter responds to Louis by

a) agreeing with Louis’s conclusion by offering additional information to support it.
b) offering information that suggests that Louis has overlooked a mitigating consequence.
c) agreeing with Louis’s conclusion but suggesting that the outcome is positive rather than negative.
d) challenging the tenability of the facts that serve as the basis of Louis’s argument.
e) demonstrating that Louis’s conclusion is not based on relevant facts.


Solution

Correct answer: B) offering information that suggests that Louis has overlooked a mitigating consequence.
Peter is not agreeing with Louis's conclusion that the regulations will have an adverse effect on the nation's economy. Instead, Peter is pointing out that the $5.5 million spent by the finance industry will be profits for other companies in the private sector, which suggests that the negative impact on the finance industry may be offset by a positive impact on other industries. This is a mitigating consequence that Louis did not consider.

Subject: English

Related topics: Logic or Argumentation, Argument Analysis, Consequence Identification and Evidence Assessment

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