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

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VP
Joined: 22 Nov 2007
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Ronald: According to my analysis of the national economy, [#permalink]

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28 Jan 2008, 06:30
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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

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Director
Joined: 01 Jan 2008
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28 Jan 2008, 08:30
I'm going with D. Mark neglects other economic factors because he uses example from last year when economic situation was different.

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VP
Joined: 22 Nov 2007
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28 Jan 2008, 10:57
maratikus wrote:
I'm going with D. Mark neglects other economic factors because he uses example from last year when economic situation was different.

OA is B. I can't catch why

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Manager
Joined: 21 Dec 2007
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28 Jan 2008, 11:29
i cant differetiate betwenn A and B. A seems more appropriate

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SVP
Joined: 28 Dec 2005
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28 Jan 2008, 14:45
i said b.

Eliminated A because for one, its too extreme, and secondly, we cant assume that he inferred the 'only' part. Remember, its an infer question, and B pretty much states what was initially said; if interest rates go down, housing prices go up.

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Senior Manager
Joined: 19 Nov 2007
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28 Jan 2008, 20:05
rafiaiqbal wrote:
i cant differetiate betwenn A and B. A seems more appropriate

difference between A and B is the word 'only'
B is tough to get at, but appropriate.

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Director
Joined: 30 Jun 2007
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28 Jan 2008, 23:04
It can be inferred from the conversation above that Mark has interpreted Ronald’s statement to mean that
Mark intepreted the Ronald’s argument by: If housing prices fall -> must increase house prices

(A) housing prices will rise only if interest rates fall (This is too extreme – Eliminate it)

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

(C) interest rates and housing prices tend to rise and fall together (Not as per Mark - Eliminte it)

(D) interest rates are the only significant economic factor affecting housing prices (Too extreme and definitely not as per Mark - Eliminte it)

(E) interest rates are likely to fall significantly in the next six months (What in near future is outside Mark’s argument - Eliminte it)

Kudos [?]: 179 [0], given: 0

Re: cr 1000 7   [#permalink] 28 Jan 2008, 23:04
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