Ronald: According to my analysis of the national economy, housing pric

Question

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 Ronald’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

RaghavSingla · Accepted Answer

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 Ronald’s statement to mean that

(A) housing prices will rise only if interest rates fall
Wrong. But can be taken as an answer if a better answer was not present. I think the use "will" shows that this will happen for sure. But Ronald was just assuming it from his predictions.

(B) if interest rates fall, housing prices must rise
Correct. Another way to take inference question is to summarize it.

(C) interest rates and housing prices tend to rise and fall together
Wrong. It's vice versa

(D) interest rates are the only significant economic factor affecting housing prices
Wrong. I chose this answer but after later realization i understood that this would have been a correct answer if it was an assumption question. As this is an assumption that they are making.

(E) interest rates are likely to fall significantly in the next six months
Wrong. We cannot say it for sure.

srini123 · Answer

17. 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 Ronald’s statement to mean that
(A) housing prices will rise only if interest rates fall 
(B) if interest rates fall, housing prices must rise  (Correct - coz Mark is trying to justify that even when Int.Rate fell, housing prices didn't increase, he must've thought Ronald meant that if Int. rate drops house prices 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

I think its B

ykaiim · Answer

+1 for B.
As indicated by the Mark's first sentence-I disagree, This is simply a Logical formalism question. Negate the sentences and reverse it. You will get the answer.

If you need some info on Logical formalism then refer the link:
https://richardbowles.tripod.com/gmat/cr/logic.htm

Nightmare007 · Answer

I think its B. He assumes Roland thinks the Trend of interest rates and housing prices will always be same, and provides an example to counter the same.

So the answer must be B.

nandeta · Answer

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 Ronald’s statement to mean that

(A) housing prices will rise only if interest rates fall
 Wrong. But can be taken as an answer if a better answer was not present. I think the use "will" shows that this will happen for sure. But Ronald was just assuming it from his predictions.

(B) if interest rates fall, housing prices must rise
  Correct. Another way to take inference question is to summarize it.

(C) interest rates and housing prices tend to rise and fall together
 Wrong. It's vice versa

(D) interest rates are the only significant economic factor affecting housing prices
 Wrong. I chose this answer but after later realization i understood that this would have been a correct answer if it was an assumption question. As this is an assumption that they are making.

(E) interest rates are likely to fall significantly in the next six months
 Wrong. We cannot say it for sure.

kd1895 · Answer

A and B look the same. Why is A wrong? Someone please explain.

Posted from my mobile device

jaisonsunny77 · Answer

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.

If we take a closer look at Mark's response to Ronald, we can see that Mark expected the housing prices to 'increase' when the interest rates 'fell'. This school of thought is perfectly reflected in (B)

(B) if interest rates fall, housing prices must rise

Therefore,    (B) is the right answer choice.

PS: Please feel free to DM me if you feel like you need any help with the CR/SC of the GMAT.

gvij2017 · Answer

very nice problem. 
3 cases here

1. unless, 
2. only if 
3. if

need expert explanation for all three case in context of this Q.

petrichor · Answer

(A) housing prices will rise only if interest rates fall

If Mark intrepreted Ronald's statement like this, to refute Ronald, his response would have been " There is another factor which caused the housing price to increase (say everybody won a lottery which drove up the demand), so interest rate is NOT the only reason for the rise."

VV21 · Answer

One important logic to remember:
1. If A, then B (If I'm in Paris, I'm in France)
2. If B, may or may not B (If I'm in France, I may or may not be in Paris)

Here, Ronald intends to say that (as per 1):
1. If housing prices increase, that means interest rates have fallen (If A, then B must have happened)

But Mark ignores the 'may not' condition in 2. 
a) According to Mark, if B then A (if rates fall, prices increase) 
b) Correct statement is if B, A may or may not have happened (if rates fall, prices may or may not increase)

Posted from my mobile device

vignesh2895 · Answer

Can some one explain why not option (d) ?

SafSin28 · Answer

A=interest rates drop significantly.
B=housing prices increase

Ronald: If not B, then shouldn't A.
Mark: When B, then not A.

So, let's try to negate both:
Ronald: If A, then should B.
Mark: When A, then not B.
This means that B leads to occur A.

Hence, B

https.aakash_l · Answer

I got the correct answer, but I am not able to properly eliminate the D option. Can you please tell me why the D option is incorrect.

DmitryFarber · Answer

https.aakash_l

We might see D as an assumption of Ronald's argument, but that doesn't make it an answer to the question at hand. Mark's response doesn't deal with ruling out or demonstrating that other factors affect the housing market, so D has no relevance to the question.

Jayant9090 · Answer

Option (B): Correct; it points out the necessary-vs-Sufficient flaw in mark logic(My line of reasoning).

Ronald: According to my analysis of the national economy, housing pric

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Ronald: According to my analysis of the national economy, housing pric

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