Consider the premise. Does the hypothesis stand independently without contradicting or following it? Premise: Because a reduction in the I/S ratio means that changes in sales will be matched by a smaller change in inventories, a lower ratio also implies lower inventory volatility. Hypothesis: A lower I/S ratio results in lower inventory volatility and changes in sales will result in smaller changes in inventories.
Because a reduction in the I/S ratio means that changes in sales will be matched by a smaller change in inventories, a lower ratio also implies lower inventory volatility.###A lower I/S ratio results in lower inventory volatility and changes in sales will result in smaller changes in inventories.