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Ronald: According to my analysis of the national economy,

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Manager
Joined: 07 Mar 2005
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Ronald: According to my analysis of the national economy, [#permalink]

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09 Apr 2005, 15:22
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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

B/D
_________________

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

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Manager
Joined: 17 Dec 2004
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10 Apr 2005, 08:49
I'd go with B, too.

B) if interest rates fall (ever), it will lead to a rise in housing prices - this is what Mark is thinking as he tries to refute Ronald.

D) not this because Mark is taking issue over what he thinks is a direct relationship between interest rates and housing prices.

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VP
Joined: 26 Apr 2004
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Location: Taiwan

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10 Apr 2005, 09:18
karun_aggarwal 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 mont

B/D

go with B

Ronald: if no rates drop, housing prices should not increase.
Mark: rates drop but housing prices didn't increase.

From Mark's reply, we can infer his assumption that when rates drop, housing price must rise.

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GMAT Club Legend
Joined: 07 Jul 2004
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Location: Singapore

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10 Apr 2005, 21:50
B is best. We should be making a answer choice based only on the statements given in the passage. D goes on to suggest economic factors, rather than the cause-effect relationship (interest rate - housing price) discussed in the argument given.

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Director
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11 Apr 2005, 06:14
B. This has been previously discussed

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11 Apr 2005, 06:14
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Ronald: According to my analysis of the national economy,

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