NEW HERE? LEARN MORE
closeclose
Last visit was: 25 Apr 2024, 15:05 It is currently 25 Apr 2024, 15:05
Decision Tracker
My Rewards
New posts
New comers' posts

Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

Community spokesperson: As a result of a recent surge of foreclosures,

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
souvik101990
Alum
Joined: 19 Mar 2012
Posts: 4341
Own Kudos [?]: 51450 [69]
Given Kudos: 2326
Location: United States (WA)
Concentration: Leadership, General Management
Schools: Ross '20 (M)
GMAT 1: 760 Q50 V42
GMAT 2: 740 Q49 V42 (Online)
GMAT 3: 760 Q50 V42 (Online)
GPA: 3.8
WE:Marketing (Non-Profit and Government)
Send PM
GMAT ToolKit User Reviews Badge
Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   Updated on: 02 Nov 2018, 05:35
11
Kudos
58
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

75% (hard)

Question Stats:

54% (02:02) correct 46% (01:58) wrong based on 2404 sessions
Hide Show timer Statistics
Community spokesperson: As a result of a recent surge of foreclosures, many homes in our town are vacant and falling into disrepair. Property values have already plummeted and, unless preventative action is taken, will likely continue to plummet as panicked residents, fearing a further decline in the value of their homes, begin to leave town. To prevent this snowball effect, the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Which of the following, if true, provides the strongest indication that the plan recommended by the community spokesperson is not likely to achieve its goal?


(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values.

(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages.

(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live.

(D) Low interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years.

(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs.


Verbal Question of The Day: Day 96: Critical Reasoning


Subscribe to GMAT Question of the Day: E-mail | RSS
For All QOTD Questions Click Here
ShowHide Answer
Official Answer
C

Originally posted by souvik101990 on 05 Sep 2017, 15:27.
Last edited by Bunuel on 02 Nov 2018, 05:35, edited 1 time in total.
Renamed the topic and edited the question.
Most Helpful Reply
User avatar
L
GMATNinja
GMAT Club Verbal Expert
Joined: 13 Aug 2009
Status: GMAT/GRE/LSAT tutors
Posts: 6921
Own Kudos [?]: 63668 [35]
Given Kudos: 1774
Location: United States (CO)
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170

GRE 2: Q170 V170
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   06 Sep 2017, 05:54
23
Kudos
12
Bookmarks
Expert Reply
The passage describes the following "snowball effect":

  • Many homes are vacant and falling into disrepair.
  • We can infer that this has caused property values in the town to plummet.
  • Fearing a further decline in the value of their homes, panicked residents will begin to leave town.
  • If residents leave town, there will be an even greater number of vacant homes, which will presumably cause property values to continue to fall.
  • If property values continue to fall, more residents will presumably panic and leave their homes.

The community spokesperson has a plan: she recommends that, in order to prevent this snowball effect, "the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years." And the question is asking us to find the answer choice that most strongly indicates that this plan is unlikely to achieve its goals.

Quote:
(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values.

The purpose of the plan is to prevent the snowball effect. Choice (A) is a reason why residents would NOT leave, which would lessen the snowball effect. If anything, this might contribute to the success of the recommended plan. Choice (A) certainly does not suggest that the plan will fail, so eliminate (A).

Quote:
(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages.

The spokesperson does not say that implementing the recommended plan is the ONLY way to prevent panicked residents from leaving town. The spokesperson simply suggests that this is ONE way to prevent the snowball effect. Eliminate (B).

Quote:
(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live.

If crime rates have risen and the town is a less desirable place to live, potential buyers might be discouraged from buying homes in the town, even if special mortgages are offered. Choice (C) is detrimental to the spokesperson's plan, so let's hang on to this one.

Quote:
(D) Low interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years.

Notice that choice (D) says "SOME buyers". Sure, some buyers might leave after five years, but as long as the town can encourage people to fill the vacant homes, the snowball effect will be prevented and the plan will succeed. If MOST buyers were to leave after five years, the town could run into the same problem, but if only SOME buyers leave, there is no reason to expect that to happen. Eliminate (D).

Quote:
(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs.

The argument does not discuss how the special mortgages would be funded. Cutting the funding for many community programs might be a negative consequence of implementing the plan, but this does not suggest that the plan will fail. Eliminate choice (E).

Choice (C) is the best answer.
General Discussion
User avatar
B
MadaraU
Intern
Intern
Joined: 07 Feb 2017
Posts: 33
Own Kudos [?]: 24 [1]
Given Kudos: 319
Send PM
GMAT ToolKit User
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   05 Sep 2017, 19:06
1
Bookmarks
IMO D

topic at hand :- Can it prevent snowball effect by encouraging potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years ?

option D tells Government will only be able to attract buyers who won't be able to make payments after 5 years when interest rate are higher, hence snowball effect continues.

Any constructive criticism is always appreciated :)
User avatar
B
imyuva
Manager
Manager
Joined: 18 Apr 2016
Posts: 54
Own Kudos [?]: 55 [4]
Given Kudos: 45
Location: India
GMAT 1: 510 Q46 V17
WE:Web Development (Energy and Utilities)
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   05 Sep 2017, 22:09
4
Kudos
MadaraU wrote:
IMO D

topic at hand :- Can it prevent snowball effect by encouraging potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years ?

option D tells Government will only be able to attract buyers who won't be able to make payments after 5 years when interest rate are higher, hence snowball effect continues.

Any constructive criticism is always appreciated :)


Why cannot C is the answer?

In C, If crimes rates are increased, people will leave the city, no matter what mortgages are. Then snowball effect will continue.

In D, Government will able to attract buyers. So snowball effect will stopped now. we don't want to know whether snowball effect continue after 5 years or not.
User avatar
B
kill3rlook5
Intern
Intern
Joined: 14 Dec 2016
Status:Searching for something I've been searching..LOL
Posts: 46
Own Kudos [?]: 93 [6]
Given Kudos: 158
Location: India
Concentration: Healthcare, Operations
Schools: Ross '20
GMAT 1: 590 Q35 V42
GPA: 3.5
WE:Medicine and Health (Health Care)
Send PM
GMAT ToolKit User
Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   05 Sep 2017, 22:41
5
Kudos
souvik101990 wrote:
Community spokesperson: As a result of a recent surge of foreclosures, many homes in our town are vacant and falling into disrepair. Property values have already plummeted and, unless preventative action is taken, will likely continue to plummet as panicked residents, fearing a further decline in the value of their homes, begin to leave town. To prevent this snowball effect, the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Which of the following, if true, provides the strongest indication that the plan recommended by the community spokesperson is not likely to achieve its goal?

(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values.
(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages.
(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live.
(D) Low interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years.
(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs.



Conclusion :- Foreclosures------> Vacant homes-----> homes becoming dilapidated------>Fall in price -----> exodus of people and then again back to more foreclosures.

Solution suggested :- Low interest rate mortgages for first 5 years to encourage potential buyers

Any option that negates the effect of the solution is the one which will stand as a wall between the plan and its success.

C--> speaks of increasing crime rates and that the place is becoming less desirable as a place to live. However it does not show us why the plan of offering low mortgage rates will fail. A place becoming less desirable doesn't mean everyone will leave the city.

D--> This option however attacks the core of the assumption of the spokesperson..viz..Low interest rates for first five years. A low interest rate might spur the demand for homes in the short term. however in the long term when the interest rates will rise again, what if the same buyer is not able to pay the increased costs??

hence option D is the only one which serves to weaken the assumption in the plans of the spokesperson.
User avatar
L
Skywalker18
Verbal Forum Moderator
Joined: 08 Dec 2013
Status:Greatness begins beyond your comfort zone
Posts: 2101
Own Kudos [?]: 8810 [0]
Given Kudos: 171
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE:Information Technology (Consulting)
Send PM
GMAT ToolKit User Reviews Badge
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   12 Sep 2017, 21:16
Community spokesperson: As a result of a recent surge of foreclosures, many homes in our town are vacant and falling into disrepair. Property values have already plummeted and, unless preventative action is taken, will likely continue to plummet as panicked residents, fearing a further decline in the value of their homes, begin to leave town. To prevent this snowball effect, the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Boil it down - To prevent property prices from falling further , town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Type - weaken

(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values. - Irrelevant - we are not concerned about those residents
(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages. - Incorrect - just because there are other ways , it does not make this way a bad one
(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live. - Correct
(D) Low interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years. - ISWAT - some might be very few people and that too might fail in repaying loans after 5 years
(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs. Incorrect - it just tells how the town plans to fund and does not weaken the plan

Answer C
User avatar
L
gmatexam439
Moderator
Joined: 28 Mar 2017
Posts: 1090
Own Kudos [?]: 1970 [0]
Given Kudos: 200
Location: India
Concentration: Finance, Technology
Schools: McDonough '21 (A$) Jones '21 (A$) Kelley '23 (A)
GMAT 1: 730 Q49 V41
GPA: 4
Send PM
Reviews Badge
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   13 Sep 2017, 07:45
Community spokesperson: As a result of a recent surge of foreclosures, many homes in our town are vacant and falling into disrepair. Property values have already plummeted and, unless preventative action is taken, will likely continue to plummet as panicked residents, fearing a further decline in the value of their homes, begin to leave town. To prevent this snowball effect, the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Which of the following, if true, provides the strongest indication that the plan recommended by the community spokesperson is not likely to achieve its goal?

(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values. -This is the opposite of the premise. The residents will leave irrespective of the # of years they have spent in their homes.
(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages. -This is a fact set.
(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live. -Correct. If the town becomes unsafe, no plan will work.
(D) Low interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years. -The banks should take care of such people who won't be able to pay post the increment in the interest rate. Also, there will always be some people who will not be able to repay the loan properly.
(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs. -Out of scope
User avatar
L
Mo2men
RSM Erasmus Moderator
Joined: 26 Mar 2013
Posts: 2461
Own Kudos [?]: 1360 [1]
Given Kudos: 641
Concentration: Operations, Strategy
Schools: Erasmus (II)
Send PM
Reviews Badge
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   16 Sep 2017, 02:08
1
Kudos
I have interpretation for choice E. If the town will cut funding for many problems, this will affect the community service and hence make less desirable. Why people should buy home in a town that is poor in service? While the town will subsidize the price, it will lower quality of life.

Where did I go wrong?

Thanks
User avatar
L
GMATNinja
GMAT Club Verbal Expert
Joined: 13 Aug 2009
Status: GMAT/GRE/LSAT tutors
Posts: 6921
Own Kudos [?]: 63668 [1]
Given Kudos: 1774
Location: United States (CO)
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170

GRE 2: Q170 V170
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   26 Sep 2017, 08:45
1
Kudos
Expert Reply
Mo2men wrote:
I have interpretation for choice E. If the town will cut funding for many problems, this will affect the community service and hence make less desirable. Why people should buy home in a town that is poor in service? While the town will subsidize the price, it will lower quality of life.

Where did I go wrong?

Thanks

This is a good point. Cutting funding for many community programs could also lower the quality of life. But remember that we are looking for an answer choice that provides the strongest indication that the plan is not likely to achieve its goal. Also, we do not know how much the funding for such programs would have to be cut. Perhaps the programs will not be significantly affected by the funding cuts.

So, which sounds like a stronger reason to leave town: a significant rise in crime rates or an unspecified decrease in funding for community programs? Although the latter might contribute to the problem, choice (C) is a better answer.

Great question!
avatar
B
NAvinash
Intern
Intern
Joined: 06 Jun 2018
Posts: 27
Own Kudos [?]: 5 [0]
Given Kudos: 126
Location: India
Schools: IIMA PGPX"20 (D)
GMAT 1: 640 Q47 V30
GMAT 2: 540 Q42 V22
GPA: 3.7
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   04 Oct 2018, 20:11
GMATNinja,

Option C says 'less desirable' and I understand after going through different explanations of all other questions that word such 'expected' ' desirable' ' preferred' are not a firm answers or firm feelings and so can not predict the outcome. Whereas option D knows that some buyers will be at defaulter and plan will fail.

Appreciate your help to clarify.
User avatar
L
GMATNinja
GMAT Club Verbal Expert
Joined: 13 Aug 2009
Status: GMAT/GRE/LSAT tutors
Posts: 6921
Own Kudos [?]: 63668 [1]
Given Kudos: 1774
Location: United States (CO)
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170

GRE 2: Q170 V170
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   09 Oct 2018, 21:16
1
Kudos
Expert Reply
NAvinash wrote:
GMATNinja,

Option C says 'less desirable' and I understand after going through different explanations of all other questions that word such 'expected' ' desirable' ' preferred' are not a firm answers or firm feelings and so can not predict the outcome. Whereas option D knows that some buyers will be at defaulter and plan will fail.

Appreciate your help to clarify.

I discourage you from rejecting non-quantitative words because they are not "firm." If you begin using this as a strategy for approaching critical reasoning, you will fall into a rigid pattern that costs you a lot of time without increasing your score.

Instead, be clear on what you're being asked and focus on the logic of each argument. In this particular case, the question asks us to identify which choice, if true, most weakens the argument.

In choice (C), "Crime rates have risen significantly" is not an ambiguous or subjective statement. It is stated as a hard fact about what's happened to the town. Similarly, people's response to that rise in crime rate is not ambiguous or subjective. We are told that the town, as a whole, has become a less desirable place to live due to the rise in crime. And the question asks us to analyze the consequences of the statement when it is true. So there's no need to doubt this statement as it is written.

On the other hand, the quantitative language in choice (D) is more ambiguous than it seems, and it doesn't do very much to weaken the logical argument. If we only know that some buyers will be unable to make their mortgage payments after the first five years, then there are many other potential buyers that we still know nothing about. They could very well be able to make their mortgage payments year after year. They may or may not be a flight risk -- we have no idea.

Ultimately, we are asked to analyze how each answer choice would affect the argument -- not whether the answer choices actually are true. (C) gives us a big new piece of evidence that has a large impact on the argument. (D) gives us an incomplete piece of evidence that has quite a small impact on the argument.

That's why we eliminate (D) and stick with (C). I hope this helps!
avatar
S
Beqa
Intern
Intern
Joined: 06 Nov 2014
Posts: 17
Own Kudos [?]: 35 [0]
Given Kudos: 52
Location: Viet Nam
GMAT 1: 720 Q50 V36
GMAT 2: 740 Q50 V40
GPA: 3.67
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   13 Oct 2019, 20:55
GMATNinja wrote:
Mo2men wrote:
I have interpretation for choice E. If the town will cut funding for many problems, this will affect the community service and hence make less desirable. Why people should buy home in a town that is poor in service? While the town will subsidize the price, it will lower quality of life.

Where did I go wrong?

Thanks

This is a good point. Cutting funding for many community programs could also lower the quality of life. But remember that we are looking for an answer choice that provides the strongest indication that the plan is not likely to achieve its goal. Also, we do not know how much the funding for such programs would have to be cut. Perhaps the programs will not be significantly affected by the funding cuts.

So, which sounds like a stronger reason to leave town: a significant rise in crime rates or an unspecified decrease in funding for community programs? Although the latter might contribute to the problem, choice (C) is a better answer.

Great question!


Hi GMATNinja,

Does GMAT really test on which statement weaken more? I believe that there should be only 1 weaken answer in any official Weaken question.

Kindly correct if my understanding is not correct.
User avatar
S
abhishekmayank
Manager
Manager
Joined: 26 Apr 2016
Posts: 209
Own Kudos [?]: 48 [0]
Given Kudos: 6
GMAT 1: 640 Q44 V33
Send PM
Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   24 Jul 2020, 10:44
Somehow, the option C is not convincing.

At best, this option is competing with the proposed plan of lowering the interest rate of the mortgage loan. The proposal is supposed to encourage the prospective buyers whereas the increase in crime, as mentioned in option C, will discourage. I fail to understand as to why we are assuming that in this competing options with their respective counter effects for each other, the option C is bound to win and Community spokesperson's proposal destined to be doomed in front of option C?
There is a very possibility that encouragement to the prospective buyers will fructify, though with some subdued effect because of the fact mentioned at option C. In that case the Community spokesperson's goal will not completely fail.

Experts, could you please address the issue ?
User avatar
L
yashikaaggarwal
Senior Moderator - Masters Forum
Joined: 19 Jan 2020
Posts: 3137
Own Kudos [?]: 2769 [0]
Given Kudos: 1510
Location: India
Schools: Cranfield (A) Warwick MiM "23 (M)
GPA: 4
WE:Analyst (Internet and New Media)
Send PM
Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   24 Jul 2020, 11:16
abhishekmayank wrote:
Somehow, the option C is not convincing.

At best, this option is competing with the proposed plan of lowering the interest rate of the mortgage loan. The proposal is supposed to encourage the prospective buyers whereas the increase in crime, as mentioned in option C, will discourage. I fail to understand as to why we are assuming that in this competing options with their respective counter effects for each other, the option C is bound to win and Community spokesperson's proposal destined to be doomed in front of option C?
There is a very possibility that encouragement to the prospective buyers will fructify, though with some subdued effect because of the fact mentioned at option C. In that case the Community spokesperson's goal will not completely fail.

Experts, could you please address the issue ?


The question meant to negate the spokesperson's statement.
See the highlighted part,

Which of the following, if true, provides the strongest indication that the plan recommended by the community spokesperson is not likely to achieve its goal?


We are meant to find the weak point in the spokesperson's claim. According to spokesperson's if they put the vacant houses at easily available rates, people will prefer to stay over leaving town.
We have to find a point where people won't even prefer to visit town let alone be residing there. Or the negative point of the town

(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live.(C states that the criminal activities have increased by a significant number, which will definitely cause a dent in town's goodwill making it less desirable place to live let alone be inviting non-residents to make a home there, so this is efficiently negating the spokesperson's statement.)

Posted from my mobile device
User avatar
P
Nipungupta9081
School Moderator - INSEAD Masters
Joined: 07 Jan 2020
Posts: 510
Own Kudos [?]: 265 [0]
Given Kudos: 193
Location: India
GPA: 4
WE:Analyst (Accounting)
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   24 Jul 2020, 11:57
Answer C

Option A - the passage talks about already vacant houses which they want to sell. ( X )

Option B - what are the ways? Nothing described. ( X )

Option C - crime rates have risen significantly making it a less desirable place to live. No one will buy a house where crime rates are high. ( ✔️ )

Option D - this might be or might be not the SITUATION. ( X )

Option E - out of scope. ( X )

Posted from my mobile device
User avatar
B
whatisthematrix
Manager
Manager
Joined: 01 Dec 2020
Posts: 54
Own Kudos [?]: 6 [0]
Given Kudos: 45
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   03 Dec 2020, 11:20
Was this question actually on a GMAT test?
User avatar
P
MHIKER
Director
Director
Joined: 14 Jul 2010
Status:No dream is too large, no dreamer is too small
Posts: 972
Own Kudos [?]: 4928 [0]
Given Kudos: 690
Concentration: Accounting
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   04 Dec 2020, 08:07
Top Contributor
souvik101990 wrote:
Community spokesperson: As a result of a recent surge of foreclosures, many homes in our town are vacant and falling into disrepair. Property values have already plummeted and, unless preventative action is taken, will likely continue to plummet as panicked residents, fearing a further decline in the value of their homes, begin to leave town. To prevent this snowball effect, the town should encourage potential buyers to purchase the vacant homes by offering special mortgages with low interest rates for the first five years.

Which of the following, if true, provides the strongest indication that the plan recommended by the community spokesperson is not likely to achieve its goal?


(A) Many of the town's residents have lived in the area for over 20 years and will not want to leave their homes, despite falling property values.

(B) There are several other ways to prevent panicked residents from leaving town besides offering special mortgages.

(C) Crime rates have risen significantly since the recent surge of foreclosures, making the town a less desirable place to live.

(D) Low-interest rates will likely attract some buyers who would be unable to make their mortgage payments once the interest rate goes up after the first five years.

(E) In order to subsidize the special mortgages offered by lenders as part of the plan, the town would have to cut funding for many community programs.


Option C says there is other is other reason, why people are less interested to buy houses in the city and that is the increase in crime rate. So, C will be the answer. E is tempting to be answer but it doesn't tell about any reason so the the people will not buy houses even after getting loan with low interest rate.
avatar
B
ricardorr04
Current Student
Joined: 05 Nov 2020
Posts: 81
Own Kudos [?]: 8 [0]
Given Kudos: 57
Location: Dominican Republic
Schools: Wharton '23 (A)
GMAT 1: 710 Q47 V40
GPA: 3.91
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   17 Dec 2020, 13:38
This is a good question. Chose C in 1:59

The goal is to find and answer choice that invalidates the claim that providing low cost interest rates will spur buying and thus bring back property values.

If we introduce a variable such as increasing crime rates leading to people leaving, we are essentially invalidating the claim since people will not be attracted to live there despite low cost mortgages.

thank u!
User avatar
VerbalBot
Non-Human User
Joined: 01 Oct 2013
Posts: 17220
Own Kudos [?]: 848 [0]
Given Kudos: 0
Send PM
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink] New post   14 Dec 2023, 09:06
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
GMAT Club Bot
gmatclubot
Re: Community spokesperson: As a result of a recent surge of foreclosures, [#permalink]
14 Dec 2023, 09:06
Moderators:
GMATNinja
GMAT Club Verbal Expert
6921 posts
GMATNinjaTwo
GMAT Club Verbal Expert
238 posts
mysterymanrog
CR Forum Moderator
832 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions