BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

housing prices

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Senior | Next Rank: 100 Posts
Posts: 59
Joined: Wed Apr 29, 2009 6:05 pm
by sq720 » Sun May 17, 2009 6:39 pm
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
(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

C
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Critical Reasoning |
Newbie | Next Rank: 10 Posts
Posts: 9
Joined: Tue Apr 21, 2009 8:00 am

Can someone explain this?

by tamina1 » Mon May 18, 2009 5:49 am
Pls explain why OMA is C
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Legendary Member
Posts: 575
Joined: Tue Nov 04, 2008 2:58 amFollowed by: 4 members
Location: India
Thanked: 18 times
GMAT Score:710

by rahulg83 » Mon May 18, 2009 6:25 am
Why not D? Anybody pls..
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 1799
Joined: Wed Dec 24, 2008 3:03 amFollowed by: 2 members
Thanked: 36 times

by goelmohit2002 » Mon May 18, 2009 7:22 am
IMO "C" is directly contradicted by the following statement in the question itself...

"when interest rates last fell significantly, housing prices did not increase at all. "....

What is the problem with "D"....it looks to be correct....
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 154
Joined: Thu Mar 19, 2009 12:55 pmFollowed by: 1 member
Thanked: 5 times

Re: housing prices

by vinaynp » Mon May 18, 2009 7:41 am
sq720 wrote: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
(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

C
A) => too extreme.
C) => contradicts
D) => too extreme
E) => cannot be interpreted

B) => This is a milder version of D). Hence my answer.

What is the source of this question?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 141
Joined: Fri Mar 06, 2009 8:40 am

by hmboy17 » Mon May 18, 2009 8:09 am
My answers would also be B. I don't understand the QA which is C. Pls share the source and explanation if possible.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 141
Joined: Fri Mar 06, 2009 8:40 am

by hmboy17 » Mon May 18, 2009 8:09 am
My answers would also be B. I don't understand the QA which is C. Pls share the source and explanation if possible.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Legendary Member
Posts: 1799
Joined: Wed Dec 24, 2008 3:03 amFollowed by: 2 members
Thanked: 36 times

by goelmohit2002 » Mon May 18, 2009 10:50 am
Yes Looking at the question again "B" looks better.

A) housing prices will rise only if interest rates fall => opposite of what Mark says.
(B) if interest rates fall, housing prices must rise => Correct. That is his whole point of argument.
(C) interest rates and housing prices tend to rise and fall together => As per his example, the opposite is the case last year.
(D) interest rates are the only significant economic factor affecting housing prices => We can't say that....no where Mark says so.
(E) interest rates are likely to fall significantly in the next six months => Obviously wrong. IMO this is totally irrelevant.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 154
Joined: Mon Apr 13, 2009 10:57 pm
Thanked: 3 times

by thetrystero » Tue May 19, 2009 10:59 pm
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
(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
My choice: D
C, E are wrong.
A: cause/effect reversed.
B is close. Although this is indeed what Ronald said, he made that statement in light of the economic situation.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 154
Joined: Mon Apr 13, 2009 10:57 pm
Thanked: 3 times

Re: housing prices

by thetrystero » Tue May 19, 2009 11:02 pm
sq720 wrote: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
(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

C
OA posted is obviously wrong.

@sq720: please post correct OA and source.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Senior | Next Rank: 100 Posts
Posts: 59
Joined: Wed Apr 29, 2009 6:05 pm

sorry

by sq720 » Mon May 25, 2009 5:33 am
the correct answer is B sorry for the typoo
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 116
Joined: Sun Feb 01, 2009 10:56 am

by Musicolo » Mon May 25, 2009 7:26 am
Could be either B or D. this one is a lucky guess as they both seem fine.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Master | Next Rank: 500 Posts
Posts: 385
Joined: Sun May 24, 2009 3:55 pm
Thanked: 11 times
GMAT Score:740

by Domnu » Thu May 28, 2009 6:21 am
I don't think the answer can be D; Mark's statement only entailed the effect of interest rates on the house prices. Nowhere did he mention anything about "only significant" economic factor... there could be other significant factors.

This leaves B to be the right answer... it is the converse of Ron's statement.
Have you wondered how you could have found such a treasure? -T
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 103
Joined: Fri May 22, 2009 3:56 am
Thanked: 4 times
GMAT Score:470

by gmatplayer » Thu May 28, 2009 7:32 am
"Must" in (B) is too extreme

Statement never says or implies "Only significant factor" so (D) cannot be inferred

(C) on the other hand may imply:
When there was significant drop in interest last year" prices did not increase at all", so price might have decreased a little (possible). So they tend to rise & fall together can be the inferrence.
I would have selected (C)
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 103
Joined: Fri May 22, 2009 3:56 am
Thanked: 4 times
GMAT Score:470

by gmatplayer » Thu May 28, 2009 7:32 am
"Must" in (B) is too extreme

Statement never says or implies "Only significant factor" so (D) cannot be inferred

(C) on the other hand may imply:
When there was significant drop in interest last year" prices did not increase at all", so price might have decreased a little (possible). So they tend to rise & fall together can be the inferrence.
I would have selected (C)
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply