[問題]大全6-19

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[問題]大全6-19

帖子angelat » 2006-07-25 19:23

大全-6-19. In January there was a large drop in the number of new houses sold, because interest rates for mortgages were falling and many consumers were waiting to see how low the rates would go. This large sales drop was accompanied by a sharp rise in the average price of new houses sold.
Which of the following, if true, best explains the sharp rise in the average price of new houses?
(A) Sales of higher-priced houses were unaffected by the sales drop because their purchasers have
fewer constraints limiting the total amount they pay.
(B) Labor agreements of builders with construction unions are not due to expire until the next
January.
(C) The prices of new houses have been rising slowly over the past three years because there is an
increasing shortage of housing.
(D) There was a greater amount of moderate-priced housing available for resale by owners during
January than in the preceding three months.
(E) Interest rates for home mortgages are expected to rise sharply later in the year if predictions of
increased business activity in general prove to be accurate.

答案是A
我選得是C
我想的是:利率降低會伴隨著房價增高的原因,是因為房子數量不夠,所以價格並不跟隨利率一起降低,所以我選C,請問這樣想錯在哪裡呢?
angelat
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帖子Beegeez2 » 2006-07-25 21:46

The question concerns explaining the paradox: why this large sales drop was accompanied by a sharp rise in the average price of new houses sold?

The author states that large sales drop was due to "expectation of lower interest rate." Thus, you should focus on why this expectation can co-exist with "a sharp rise in the avg price."

If you chose (C), you might have done so because "increasing shortage of housing" seems to have something to do with "a sharp rise." But (C) fails to explain the co-existence of these two seemingly contracdictory phenomena.
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