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

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Manager
Joined: 09 Jun 2009
Posts: 169
Ronald: According to my analysis of the national economy, housing pric  [#permalink]

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09 Dec 2009, 15:27
3
00:00

Difficulty:

55% (hard)

Question Stats:

56% (01:35) correct 44% (02:01) wrong based on 180 sessions

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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
(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
Senior Manager
Affiliations: PMP
Joined: 13 Oct 2009
Posts: 256
Re: Ronald: According to my analysis of the national economy, housing pric  [#permalink]

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09 Dec 2009, 20:29
1
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
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Director
Joined: 24 Aug 2007
Posts: 763
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Re: Ronald: According to my analysis of the national economy, housing pric  [#permalink]

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24 Apr 2010, 05:38
+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:
http://richardbowles.tripod.com/gmat/cr/logic.htm
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Ronald: According to my analysis of the national economy,  [#permalink]

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03 Jul 2016, 04:20
1
2
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
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Joined: 27 Jan 2013
Posts: 97
Location: India
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Re: Ronald: According to my analysis of the national economy,  [#permalink]

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03 Jul 2016, 04:26
1
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

In this ques, Ronald states that housing prices should not increase during next 6 months unless interest rates drop significantly. He means to say that till interest rates don't drop significantly, housing prices should not increase. However, he doesn't says that once interest rates falls, housing prices must increase. Mark in his reply assumes that once interest rates fall, prices must increase. Hence Option B.

Please give kudos if this all makes sense !
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Re: Ronald: According to my analysis of the national economy, housing pric  [#permalink]

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27 Feb 2018, 02:57
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.
Intern
Joined: 24 Apr 2017
Posts: 4
Re: Ronald: According to my analysis of the national economy, housing pric  [#permalink]

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24 Jun 2018, 09:10
Can anyone please tell me why D is wrong?
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Re: Ronald: According to my analysis of the national economy,  [#permalink]

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24 Jun 2018, 10:28
Stuck between B and D, after reading it again B is the answer.
Mark says- interest rates fell significantly but housing rates did not increase, hence he is expecting from Ronald's statement that interest rate and housing rate are inversely proportional 'always'.

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

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24 Jun 2018, 23:41
mechenique wrote:
Can anyone please tell me why D is wrong?

[you-tube][/you-tube]

In my opinion, it is incorrect because we cannot infer that. Well he does consider that when interest rates fall, pricing must increase but do we know whether he considers that as the only significant factor? No, we cannot be sure (we cannot assume, only infer).
Re: Ronald: According to my analysis of the national economy, &nbs [#permalink] 24 Jun 2018, 23:41
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