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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
+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
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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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.
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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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 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.
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
A and B look the same. Why is A wrong? Someone please explain.

Posted from my mobile device
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Ronald: According to my analysis of the national economy, housing pric [#permalink]
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.
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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.
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Ronald: According to my analysis of the national economy, housing pric [#permalink]
kd1895 wrote:
A and B look the same. Why is A wrong? Someone please explain.

Posted from my mobile device


(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."
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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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
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
Can some one explain why not option (d) ?
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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.
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
Expert Reply
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.
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Re: Ronald: According to my analysis of the national economy, housing pric [#permalink]
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