In the question a statement is given, followed by two arguments, I and II. You have to consider the statement to be true even if it seems to be at variance from commonly known facts. You have to decide which of the given arguments, if any, is a b argument.
Statement : Should high tax rates be imposed on businesses?
Argument I : No, High taxes discourage investments, thus reducing jobs and development.
Argument II : Yes, Some businesses use clever accounting to save tax, so higher taxes will be a good counter measure.
Solution
High tax rates should not be imposed on businesses.
It will lead to discourage investments, thus reducing jobs and development and if some business use clever techniques they still can use whether taxes are high or low.
So, Only argument I is strong.
$$\therefore$$ The correct answer is option C.
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