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

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VP
Joined: 13 Jun 2004
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Location: London, UK
Schools: Tuck'08
Ronald: According to my analysis of the national economy, [#permalink]

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22 Mar 2005, 20:03
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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 months

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GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5032

Kudos [?]: 453 [0], given: 0

Location: Singapore

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22 Mar 2005, 20:08
(B). Mark has interpreted Ronald's analysis as a definite relationship between housing prices and interest rates.

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Manager
Joined: 07 Mar 2005
Posts: 178

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22 Mar 2005, 23:56
A and B are kinda vice versa of each other......
i guess it is D

its a more general and broad estimation!
_________________

i hate when people do'nt post the OA, it leaves in guessing!!!!

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VP
Joined: 26 Apr 2004
Posts: 1205

Kudos [?]: 844 [0], given: 0

Location: Taiwan
Re: CR - houses and interest rates [#permalink]

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23 Mar 2005, 00:20
Antmavel wrote:
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 months

Ronald: if rates don't drop --> housing price shouldn't increase.
Mark: rates drop ->housing price didn't increase

Mark's and Ronald's argument are converse. In other words, Mark thought Ronald's argument that "rates drop---> housing price must increase."

pick B .

Kudos [?]: 844 [0], given: 0

VP
Joined: 13 Jun 2004
Posts: 1111

Kudos [?]: 51 [0], given: 0

Location: London, UK
Schools: Tuck'08

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24 Mar 2005, 06:55
OA is B

Kudos [?]: 51 [0], given: 0

24 Mar 2005, 06:55
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# Ronald: According to my analysis of the national economy,

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