GMAT Question of The Day: Critical Reasoning

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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12 Comments Post a Comment
  1. anvita says:

    answer is a)

  2. surabhi says:

    E)

  3. pranaysad says:

    B

  4. Hemant Datta says:

    D

  5. DC800 says:

    The answer is B becase Mark infers that Ronald made an if/then implication where the condition is the interest rates and the result is housing prices.

    A is wrong because Ron isn’t saying that housing prices will absolutely rise if the interest rates drop, only that the price can’t rise unless that condition of interest rates dropping is met.
    C is wrong housing prices could continue to drop while interest rates stay the same, therefore not moving together
    D is wrong because this is not a factor of the discussion, anything could have contributed to the current situation, they are only talking about what could change it.
    E is wrong because neither person attempt to predict this information.

  6. mukund says:

    answer is B
    X: house price increase
    Y: interest rate decrease
    Ron: If NOT Y then NOT X . This implies If X then Y
    Mark’s interpretation: If Y then X (choice B)

  7. GOPI says:

    its b

  8. AMAN says:

    hey arent A AND B basically same statement just twisted side ways

  9. the Fonz says:

    B

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