Discussion

If the pundit's statements are true, which of the following can be concluded?
(A)It is unlikely that an asset bubble will develop.
(B)...
(C)...
(D)...
(E)...
(F)...
*This question is included in Exercise Set 1: Intro to Conditionals, question #12

The solution is

Posted: 03/07/2012 08:19
It says if the chairman keeps interest rates excessively low for a decade. The answer that was chosen as the correct one states that interest rates be excessively low for MORE than a decade. This is why I said none of the above
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Posted: 03/07/2012 14:05
Oge, thanks for using the app and the post. If the interest rates have been kept excessively low for MORE than a decade, then it is the more reason for an asset bubble to develop.
Posted: 03/07/2012 18:20
The original statement presents a sentence that indicates a maximum amount of time in years for the asset bubble to develop (keep interest rates excessively low for a decade). The answer choice presents a solution that indicates a minimum amount of time in years for the asset bubble to develop (keeps interest rates excessively low for MORE than a decade)
Posted: 04/14/2012 00:44
I agree with you oge I also chose Choice E, because the correct answer stated "more" than a year, and that is never mentioned in the previous statement.
Posted: 04/28/2012 12:28
How is it not B? They stated that the asset bubble would be in place if interest rates are keep excessively low for a decade but they finished with it would be there if there was such a thing of a assets bubble meaning there isn't such a bubble. But interest rates were low. Answer B is more then likely interest rates were low
Posted: 04/30/2012 14:03
Diagram the statements:
I. (IR is kept low for 10 years) --> AB
The contrapositive: ~ AB --> ~ (IR is kept low for 10 years)

II. AB --> indicators for AB
~ indicators for AB --> ~ AB

Work out the conclusion:
From the 2nd statement's contrapositive, we conclude there is no indicator for AB, which means there is no AB.

Apply this to the first statement's contrapositive: If there is no AB, then it is not true that interest rates have been kept low for 10 years.

Now, I know the choice C says "... for more than 10 years" instead of just "... for 10 years". I wish the question author hadn't done it.

However, from the statement we know that if keeping the IR low for even longer will make the AB develop even more.

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