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##### This topic has expert replies
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### mortgage

by orel » Sat Apr 04, 2009 6:44 pm
If interest rates remain at their current high levels, many people who currently rent their residences will hesitate to purchase homes. As the price of real estate continues to climb, the costs of a mortgage will be too burdensome. Sellers will be forced to lower their asking prices. So, high interest rates will eventually cause the real estate market to stabilize.

In the argument above, the portions in boldface play which of the following roles?

a. The first is the author's main point; the second is a prediction that follows from that point.

b. The first is a consideration that the author believes will result in a certain situation; the second is that situation.

c. The first is a consideration that weighs against the author's main point; the second is the author's main point.

d. The first is a prediction; the second is evidence in support of that prediction.

e. The first is the author's main point; the second is evidence used to argue against that point.

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by cramya » Sat Apr 04, 2009 8:06 pm
I would go with C

The authors main point is the second bolded face sentence. The first bolded sentence kind of weighs against it since the 2nd bolded says the real estate market will stabilize and this will not happen if people dont buy new homes.

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by vertigo05 » Sun Apr 05, 2009 1:23 am
is it 'B'? because the situation mentioned in 1st sentence results in the 2nd one.

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by mjjking » Sun Apr 05, 2009 1:56 am
I would follow Cramya on this one. In fact, the first bold-faced part seems to weigh AGAINST the author's conclusion, that is his main point. And the first part of the sentence could not be logically bounded to the conclusion without the middle, non-bolded part.
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by chetanojha » Sun Apr 05, 2009 3:56 am
I think its B.

First part is the cause of certain situation and second part is the effect of the first situation.

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by shulapa » Sun Apr 05, 2009 9:38 am
Hi,

As I've noted, the most important issue in these types of question is the relationship between the bolded parts. The author describes in here a process which results from interest rates remaining high:

Interests remain high
--> prices climb --> people will be reluctant to buy house --> prices will be lowered ---> market will be stabilized.

Therefore, we can see the relationship is of event and consenquence

A. This idea is only expressed in A - main point and prediction that comes out of the main point is another way to say - event and consequence.

B. Reverses the cause and consequence.

C. The two points are not consideration of one another, but a result of one another.

D. Again, reverses cause and consequence.

E. They do not conflict they show a process.

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by orel » Sun Apr 05, 2009 1:13 pm
Thanks guys following this question!
OA is B! I chose A, which was very tempting too, Shulapa.

And here is the MGMAT solution:

The question asks us to analyze the structure of the argument. Specifically, we are asked to determine the respective roles of the two portions in boldface. To do so, we need first to find the conclusion of the argument and then determine the relationship of each boldface portion to that conclusion.

The author argues that high interest rates will cause people to refrain from buying homes because their mortgage costs will be too high. In turn, sellers will be forced to lower their asking prices. In the end, this chain of events will work to stabilize the real estate market. So the last sentence, which happens to be the second boldface portion, is the conclusion. The first boldface portion is a fact that the author belives will lead to the stabilization of the market. We need to find a choice that reflect this assessment.

(A) The first portion is not the author's main point (another term for conclusion).

(B) CORRECT. The first portion is indeed a consideration that the author believes will result in a particular situation, namely the stabilization of the market. The second is indeed that situation.

(C) The first portion does not weigh against (contradict) the author's main point (conclusion).

(D) The first is indeed a prediction, but the second portion is not evidence -- it is the conclusion.

(E) The first portion is not the main point (conclusion).

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by mbadrew » Sun Apr 05, 2009 5:16 pm
The OA intially didn't make any sense. However, the explanation clearly outlines the conclusion and the premise. So, B is the logical answer. I guess it's all about finding the conclusion and then separating it from the premises.

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by svishal1123 » Wed Apr 08, 2009 12:03 pm
I got it B. This is how I did it.
I just ignored the fact that the part of the sentences were in bold. Then there are 3 facts in the question stem and finally the conclusion. All the 3 facts build the conclusion. When answering the question consider the bold parts and determine the role they arr playing. I am not really sure whether the approach was correct.

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by svishal1123 » Wed Apr 08, 2009 12:05 pm
I got it B. This is how I did it.
I just ignored the fact that the part of the sentences were in bold. Then there are 3 facts in the question stem and finally the conclusion. All the 3 facts build the conclusion. Hence B. Not really sure if my approach was correct.

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by vanessa.m » Sun May 15, 2016 2:02 am
B looks good

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