happyinlove505 wrote:
I was thinking between A and C, and I can't understand why B is correct.
B says:
The first is a consideration that the author believes will result in a certain situation; the second is that situation.
If paraphrased, it means to me that second (stable market) is a situation and then the first one (people hesitating to buy homes) follows that situation. However, it is exactly the opposite in the question stem: people hesitating to buy homes eventually leads to stable market.
Please correct me if I am wrong.
Hi happyinlove505
I'm glad to help.
This question requires you to have some backgrounds of economics.
Your first understanding: "people hesitating to buy homes eventually leads to stable market ==> B is illogical" is not correct. Why?
First of all, stable market happens when demand and supply meet. If customers hesitate to buy homes, the demand declines. If the supply does not decline or declines faster than demand, we have a situation, namely "over supply", leading to UNSTABLE market, not stable market.
Why B is correct? B seems to be illogical but it's correct. Let see.
The logic of B is:
high interest rates --> sub-effect: stable market --> main-effect: people hesitate to buy homes.The idea that B wants to conveys is: A belief (People hesitate to buy home) will happens in a situation (stable market
when interest rate is high).
"High interest rate" is
KEY and the main
CONDITION leading to the effect "people hesitate to buy homes". The fact
"stable market" is just the
situation that reflects "high interest rates". If the market is stabilized NOT because of "high interest rate", the logic "people hesitate to buy homes in a stable market" is wrong.
That's why B means "people hesitate to buy homes in a situation - stable market" is correct.
Hope it helps.