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# Ronald: According to my analysis of the national economy,

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Ronald: According to my analysis of the national economy, [#permalink]

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15 Feb 2005, 16:32
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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 Ronaldâ€™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

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15 Feb 2005, 18:12
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
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15 Feb 2005, 18:49
B, as mark explicitly cites the interest rate connection in his rebuttal.

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15 Feb 2005, 18:53
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.
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15 Feb 2005, 18:57
(B) is a good choice. Mark has interpreted Ronald's statement narrowly (limiting word 'must').

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15 Feb 2005, 19:03
Yea an extreme assesment of the statement led to the xtreme conclusion

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16 Feb 2005, 10:05
OA is B

thanks guys

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12 Jun 2006, 21:13
could someone explain why B is better than D ? both seem plausible

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12 Jun 2006, 21:51
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'

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13 Jun 2006, 09:27
B for me - housing prices MUST rise if interest rates fall

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13 Jun 2006, 09:33
B) if interest rates fall, housing prices must rise

Mark doesn't consider the affect of the overall economy that Ronald mentioned.

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14 Jun 2006, 06:17
Clearly choice (B).
Not (A), mainly because of the use of word 'only'.

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14 Jun 2006, 16:10
Should be (B).

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14 Jun 2006, 16:10
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