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

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Manager
Joined: 01 Nov 2007
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Ronald: According to my analysis of the national economy, [#permalink]

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07 Jan 2008, 15:57
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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
Manager
Joined: 21 Dec 2007
Posts: 95
Re: National economy analysis CR tb17 [#permalink]

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07 Jan 2008, 16:02
D?
VP
Joined: 09 Jul 2007
Posts: 1098
Location: London
Re: National economy analysis CR tb17 [#permalink]

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07 Jan 2008, 16:30
D for me too.

Mark thinks Donalds statement meant that the interst rates are the only factors that affect housing prices, but there are other factors as well so mark refuted Donalds conclusion.
SVP
Joined: 28 Dec 2005
Posts: 1542
Re: National economy analysis CR tb17 [#permalink]

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07 Jan 2008, 18:41
whats wrong with B ?
Current Student
Joined: 02 Aug 2007
Posts: 186
Schools: Wharton
Re: National economy analysis CR tb17 [#permalink]

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07 Jan 2008, 22:35
I would like to know why B is incorrect here as well..
SVP
Joined: 04 May 2006
Posts: 1877
Schools: CBS, Kellogg
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 05:10
JCLEONES 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 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

A for me

The question is what does Ronald mean? or what can be inferred from Ronald statement?
Ronald means that:
"interest rates drop significantly" is necessary for "housing prices increase during the next six months"
and A is a restatement of this inference
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Joined: 04 May 2006
Posts: 1877
Schools: CBS, Kellogg
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 05:12
sterny wrote:
I would like to know why B is incorrect here as well..

B is opposite of what Ronald says! so it is not correct
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Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 05:16
B for me

(A) housing prices will rise only if interest rates fall : This is what he actually meant
(B) if interest rates fall, housing prices must rise : CORRECT. thats why Mark responded in this way
(C) interest rates and housing prices tend to rise and fall together Obviously no
(D) interest rates are the only significant economic factor affecting housing prices well neither he said that nor mark interpreted that because had he done that he would have given a example where house price changes wrt other factor
(E) interest rates are likely to fall significantly in the next six months Obviously no
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Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 05:34
JCLEONES 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 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

I think there is a confusion about what the question actually asks?
and there are 2 options (I also confused with this wording of the question)

1. if the question means that: "what does Ronald mean", the answer should be A

2. if the question means that : " what does Mark mean?", the anser should be C, because Mark weakens Ronald argument by denying the role of "increase in interest rates" to the drop of "housing price". C says that the two exists independently, not the one affecting the other. B does not tell that , so B can not be true.
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Joined: 01 Nov 2007
Posts: 146
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 10:10
Great disccussion. The OA is B. You have explained the reasons better than the book.

sondenso wrote:
JCLEONES 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 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

I think there is a confusion about what the question actually asks?
and there are 2 options (I also confused with this wording of the question)

1. if the question means that: "what does Ronald mean", the answer should be A

2. if the question means that : " what does Mark mean?", the anser should be C, because Mark weakens Ronald argument by denying the role of "increase in interest rates" to the drop of "housing price". C says that the two exists independently, not the one affecting the other. B does not tell that , so B can not be true.
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Joined: 28 Dec 2005
Posts: 1542
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 13:32
Woo hoo ! Knew it was B
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Joined: 04 May 2006
Posts: 1877
Schools: CBS, Kellogg
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 18:24
JCLEONES wrote:
Great disccussion. The OA is B. You have explained the reasons better than the book.

sondenso wrote:
JCLEONES 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 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

I think there is a confusion about what the question actually asks?
and there are 2 options (I also confused with this wording of the question)

1. if the question means that: "what does Ronald mean", the answer should be A

2. if the question means that : " what does Mark mean?", the anser should be C, because Mark weakens Ronald argument by denying the role of "increase in interest rates" to the drop of "housing price". C says that the two exists independently, not the one affecting the other. B does not tell that , so B can not be true.

Too short discussion! Tell me why B? I cannot get it!
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CEO
Joined: 29 Mar 2007
Posts: 2550
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 20:05
JCLEONES 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 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

B. Its excatly what Mark mistook Ronald to say.

Housing prices should not increase, unless rates drop.

Mark: interests rates FALL, housing prices did not increase

"if interest rates fall, housing prices must rise" so this is the mistake he made.
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Joined: 04 May 2006
Posts: 1877
Schools: CBS, Kellogg
Re: National economy analysis CR tb17 [#permalink]

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08 Jan 2008, 21:18
GMATBLACKBELT wrote:
JCLEONES 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 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

B. Its excatly what Mark mistook Ronald to say.

Housing prices should not increase, unless rates drop.

Mark: interests rates FALL, housing prices did not increase

"if interest rates fall, housing prices must rise" so this is the mistake he made.

I got it! thanks
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Senior Manager
Joined: 07 Jan 2008
Posts: 397
Re: National economy analysis CR tb17 [#permalink]

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22 Aug 2008, 00:25
GMATBLACKBELT wrote:
JCLEONES 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 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

B. Its excatly what Mark mistook Ronald to say.

Housing prices should not increase, unless rates drop.

Mark: interests rates FALL, housing prices did not increase

"if interest rates fall, housing prices must rise" so this is the mistake he made.

But Mark has never mentioned that "interest rates fall ==> housing prices rise".
In fact, he mentioned "interest rates fell, housing prices did NOT increase" or " housing prices INCREASED, interest rates NOT fell".
Manager
Joined: 11 Mar 2008
Posts: 110
Re: National economy analysis CR tb17 [#permalink]

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02 Sep 2008, 09:34
JCLEONES 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 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

Rephrasing Mark's statement should help to see the answer, the keyword here is to use “BUT”:

Mark: interest rates fell, BUT housing prices did not increase ("rise" is the original word in the text).

Therefore, Mark assumes that when IRs fall housing prices MUST increase => B
Retired Moderator
Joined: 18 Jul 2008
Posts: 959
Re: National economy analysis CR tb17 [#permalink]

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02 Sep 2008, 15:37
What's the difference in meaning between A) and B)? Anyone?
Re: National economy analysis CR tb17   [#permalink] 02 Sep 2008, 15:37
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# Ronald: According to my analysis of the national economy,

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