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Community spokesperson: After a recent surge of

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Re: Community spokesperson: After a recent surge of  [#permalink]

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New post 19 Dec 2017, 09:52
OA cannot be D here.
The plan in the argument is make easy to purchase those vacant homes.
Question ask us to find a problem in plan. It means a reason to fail the plan.
But D tells that plan will success. Peoples are likely to buy homes and why to care whether they pay after 2 years or not. Plan to fill vacant homes is successful.

Am i right? Please explain if i am wrong.
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New post 19 Dec 2017, 10:08
The wording is confusing, but if we read carefully - it is not the case that the question is about the short-term effects.
The goal of the plan, as stated in the first sentence, is to solve the problem of vacant homes in the community.
The reason many people get confused is because the question asks about "the most significant potential problem with the plan to attract buyers through special mortgage offers?", and they interpret this as meaning that this is the ultimate goal of the plan. It isn't. This merely describes what the plan is, NOT what it's goal is.
Hence, E is wrong. (D) is the answer.
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New post 19 Dec 2017, 10:11
imyuva wrote:
OA cannot be D here.
The plan in the argument is make easy to purchase those vacant homes.
Question ask us to find a problem in plan. It means a reason to fail the plan.
But D tells that plan will success. Peoples are likely to buy homes and why to care whether they pay after 2 years or not. Plan to fill vacant homes is successful.

Am i right? Please explain if i am wrong.


imyuva you are wrong, and the reason is confusion between what the plan is, and what it's goal is.

The goal of the plan, as stated in the first sentence, is to solve the problem of vacant homes in the community.

The reason many people get confused is because the question asks about "the most significant potential problem with the plan to attract buyers through special mortgage offers?", and they interpret this as meaning that this is the ultimate goal of the plan. It isn't. This merely describes what the plan is, NOT what its goal is. It goal is to solve the vacant home problem, and its tool is attracting buyers.
Hence, (E) is wrong. (D) is the answer.
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New post 11 Jan 2018, 00:27
D
Reason: stem asking issue with plan: after 2 year high interest rate will be issue since in stimulus it is clearly mentioned it is for 2 years only
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New post 05 Apr 2018, 08:20
Try this one. Similar to the discussed question, but with a nuance
https://gmatclub.com/forum/qotd-248691.html?fl=similar
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Re: Community spokesperson: After a recent surge of  [#permalink]

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New post 17 Apr 2018, 08:31
Sudhanshuacharya wrote:
Community spokesperson: After a recent surge of foreclosures, many homes in our community are vacant and falling into disrepair. Property values are already falling, and, if action is not taken quickly, will fall even further when panicked residents begin to leave. Clearly the only way to prevent a snowball effect is to make it easy to purchase these vacant homes by offering potential buyers special mortgages with a low interest rate for the first two years.

Which of the following, if true, represents the most significant potential problem with the plan to attract buyers through special mortgage offers?

A) Interest rates in the area are already at a 5-year low, and it would be foolish of lenders to lower them even more.
B) Crime rates in the area have risen by 1% in the last year, making it less likely that potential buyers will be interested in moving to the area.
C) Most residents have lived in the area for over 20 years and do not want to leave their homes.
D) Low interests rates will likely attract buyers who will be unable to make payments when the interest rate goes up after the first two years.
E) There are few mortgage brokers in the area, making it unlikely that there will be enough personnel to assist a rush of potential home buyers.

Please help with the solution

The answer is D
Due to recent events, people are leaving. It further states if we provide low interest rates and special mortage there would be an increase in the demand to move into the community.
Need to find potential problem with the plan

A. Strengthens the plan
B. Is not relevant to the discussion
C. Is not relevant
D. If this were true then within two years time, the same scenario could play out, with people leaving as they wont be able to make payments
E. Is not relevant
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New post 16 Jun 2019, 06:52
Why is B not the answer?If the people are less likely to move because of the increase in crime rate then the interest rate shouldn't matter.
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Re: Community spokesperson: After a recent surge of  [#permalink]

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New post 25 Jun 2019, 10:36
Sudhanshuacharya wrote:
Community spokesperson: After a recent surge of foreclosures, many homes in our community are vacant and falling into disrepair. Property values are already falling, and, if action is not taken quickly, will fall even further when panicked residents begin to leave. Clearly the only way to prevent a snowball effect is to make it easy to purchase these vacant homes by offering potential buyers special mortgages with a low interest rate for the first two years.

Which of the following, if true, represents the most significant potential problem with the plan to attract buyers through special mortgage offers?

A) Interest rates in the area are already at a 5-year low, and it would be foolish of lenders to lower them even more.
B) Crime rates in the area have risen by 1% in the last year, making it less likely that potential buyers will be interested in moving to the area.
C) Most residents have lived in the area for over 20 years and do not want to leave their homes.
D) Low interests rates will likely attract buyers who will be unable to make payments when the interest rate goes up after the first two years.
E) There are few mortgage brokers in the area, making it unlikely that there will be enough personnel to assist a rush of potential home buyers.

Please help with the solution


Well I googled the term "snowball effect" and this is what showed up: a snowball effect is a process that starts from an initial state of small significance and builds upon itself, becoming larger (graver, more serious), and also perhaps potentially dangerous or disastrous (a vicious circle), though it might be beneficial instead (a virtuous circle).

The conclusion says that "to prevent a snow ball effect..............................". Now, if you read option D, it actually gives rise to a snowball effect which would definitely undermine the conclusion of the argument. The sad part I picked E :| because of the long term and short term effect thing.
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Re: Community spokesperson: After a recent surge of   [#permalink] 25 Jun 2019, 10:36

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