|
Author |
Message |
|
TAGS:
|
|
|
Director
Joined: 07 Nov 2004
Posts: 511
Followers: 2
Kudos [?]:
1
[0], given: 0
|
Ronald: According to my analysis of the national economy, [#permalink]
 15 Feb 2005, 16:32
Question Stats:
0% (00:00) correct
 0% (00:00) wrong based on 0 sessions
Ronald: According to my analysis of the national economy, housing prices should not increase during the next six months unless interest rates drop significantly.
Mark: I disagree. One year ago, when interest rates last fell significantly, housing prices did not increase at all.
It can be inferred from the conversation above that Mark has interpreted Ronald’s statement to mean that
(A) housing prices will rise only if interest rates fall
(B) if interest rates fall, housing prices must rise
(C) interest rates and housing prices tend to rise and fall together
(D) interest rates are the only significant economic factor affecting housing prices
(E) interest rates are likely to fall significantly in the next six mont
|
|
|
|
|
|
|
SVP
Joined: 30 Oct 2003
Posts: 1963
Location: NewJersey USA
Followers: 3
Kudos [?]:
25
[0], given: 0
|
I would vote on (B)
|
|
|
|
|
|
VP
Joined: 27 Dec 2004
Posts: 1089
Followers: 1
Kudos [?]:
5
[0], given: 0
|
(A) or (B)
|
|
|
|
|
|
Senior Manager
Joined: 15 Feb 2005
Posts: 258
Location: Rockville
Followers: 1
Kudos [?]:
5
[0], given: 0
|
I would say B too
|
|
|
|
|
|
Intern
Joined: 02 Dec 2004
Posts: 9
Location: Stockholm, Sweden
Followers: 0
Kudos [?]:
0
[0], given: 0
|
Mark Says :
when interest rates last fell significantly, housing prices did not increase at all i.e. he believes if interest rates fall, housing prices will NOT rise. So I guess B is out 
Can somebody plz explain
_________________
The biggest risk in life is not taking one!!!
|
|
|
|
|
|
Manager
Joined: 13 Oct 2004
Posts: 246
Followers: 1
Kudos [?]:
4
[0], given: 0
|
B, as mark explicitly cites the interest rate connection in his rebuttal.
|
|
|
|
|
|
Senior Manager
Joined: 30 Dec 2004
Posts: 298
Location: California
Followers: 1
Kudos [?]:
1
[0], given: 0
|
Ronald :- Housing prices should not increase unless interest rates drop...i.e. If the interest rate increases then so to should the housing prices.
Mark:- Last year interest rates fell with no increase in housing prices. Clearly Mark believes that if Ronald is right then if interst rates fell then housing prices should increase.
B is the only option that has the correct relationship between interest rates and housing prices that Mark alluded too in his response to Ronald.
_________________
"No! Try not. Do. Or do not. There is no try.
|
|
|
|
|
|
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5134
Location: Singapore
Followers: 9
Kudos [?]:
87
[0], given: 0
|
(B) is a good choice. Mark has interpreted Ronald's statement narrowly (limiting word 'must').
|
|
|
|
|
|
Senior Manager
Joined: 15 Feb 2005
Posts: 258
Location: Rockville
Followers: 1
Kudos [?]:
5
[0], given: 0
|
Yea an extreme assesment of the statement led to the xtreme conclusion
|
|
|
|
|
|
Director
Joined: 05 Jan 2005
Posts: 648
Followers: 1
Kudos [?]:
6
[0], given: 0
|
(B)
|
|
|
|
|
|
Director
Joined: 07 Nov 2004
Posts: 511
Followers: 2
Kudos [?]:
1
[0], given: 0
|
OA is B
thanks guys
|
|
|
|
|
|
Manager
Joined: 07 Mar 2005
Posts: 193
Followers: 1
Kudos [?]:
0
[0], given: 0
|
WHY NOT D
_________________
i hate when people do'nt post the OA, it leaves in guessing!!!!
|
|
|
|
|
|
Senior Manager
Joined: 12 Mar 2006
Posts: 373
Schools: Kellogg School of Management
Followers: 2
Kudos [?]:
19
[0], given: 3
|
could someone explain why B is better than D ? both seem plausible
|
|
|
|
|
|
Director
Joined: 26 Mar 2006
Posts: 647
Followers: 1
Kudos [?]:
12
[0], given: 0
|
Quote: could someone explain why B is better than D ? both seem plausible
In CRs we should be careful with words like 'only' as used in 'D' & 'A'. They are either right on target or can be ingnored completely. As there is no ambiguity involved.
(D) interest rates are the only significant economic factor affecting housing prices
Neither Mark or Ronald have stated or agreed that interest rates are the only affecting factors.
Ronald statements are based on his analysis, which could very well involve various other factors apart from the interest rates..
But Mark goes by the face value of the statement made by Ronald. Mark doesn't bother to understand the analysis but directly compares with last years market performance...
which is quite clear in 'B'
|
|
|
|
|
|
Manager
Joined: 11 Oct 2005
Posts: 96
Followers: 1
Kudos [?]:
2
[0], given: 0
|
B for me - housing prices MUST rise if interest rates fall
|
|
|
|
|
|
VP
Joined: 02 Jun 2006
Posts: 1278
Followers: 2
Kudos [?]:
15
[0], given: 0
|
B) if interest rates fall, housing prices must rise
Mark doesn't consider the affect of the overall economy that Ronald mentioned.
|
|
|
|
|
|
Intern
Joined: 12 Jun 2006
Posts: 49
Followers: 1
Kudos [?]:
1
[0], given: 0
|
Clearly choice (B).
Not (A), mainly because of the use of word 'only'.
|
|
|
|
|
|
Senior Manager
Joined: 16 Apr 2006
Posts: 284
Followers: 2
Kudos [?]:
5
[0], given: 2
|
Should be (B).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Similar topics |
Author |
Replies |
Last post |
|
Similar
Topics:
|
 |
|
|
Ronald: According to my analysis of the national economy,
|
ywilfred |
5 |
03 Sep 2005, 02:35 |
 |
|
|
Ronald: According to my analysis of the national economy,
|
gmacvik |
12 |
11 Oct 2005, 21:17 |
|
|
|
|
Ronald: According to my analysis of the national economy,
|
cdaat |
7 |
13 Jun 2007, 23:24 |
|
|
|
|
Ronald: According to my analysis of the national economy,
|
marcodonzelli |
6 |
28 Jan 2008, 06:30 |
|
|
|
|
Ronald: According to my analysis of the national economy,
|
suntaurian |
2 |
31 Jan 2008, 10:07 |
|
|
|
|
|
Moderators:
metallicafan, rajeevrks27, souvik101990, PTK, MacFauz, noboru, kissthegmat, carcass, willigetmylifeback, mikemcgarry, doe007, Vercules, Legendaddy, tuanquang269, RaviChandra, Marcab, Narenn
|
close
