Although a surge in retail sales have raised hopes that there is a rec

Dear btan219,

I'm happy to respond.

Here's the question again:
Although a surge in retail sales have raised hopes that there is a recovery finally under way, many economists say that without a large amount of spending the recovery might not last.
(A) have raised hopes that there is a recovery finally
(B) raised hopes for there being a recovery finally
(C) had raised hopes for a recovery finally being
(D) has raised hopes that a recovery is finally
(E) raised hopes for a recovery finally

First of all, use of "had" is a tense known as the past perfect. For more on the past perfect, see this blog:
https://magoosh.com/gmat/2012/gmat-verb ... ct-tenses/
The past perfect is used to show that one action occurred before another PAST event.
If event #1 is in the PAST, and event #2 happened before it, then we would use the past tense for #1 and the past perfect for #2
When I moved to California, I had already completed my master's degree.
If event #1 is in the PRESENT, and event #2 happened before it, then we do NOT need the past perfect. We would use the present tense for #1, and one option for #2 would be the simple past tense.
I am having a big lunch now because I didn't eat breakfast.

Notice that, in this sentence, the "later" event is in the present: " . . . many economists say . . ." That's a present tense verb, a present tense action. It is 100% wrong to use the past perfect for something preceding a present action. That's one reason (C) is wrong. We could use the simple past for the previous action, but the OA here makes an interesting choice --- the present perfect. I write about this curious verb tense in that same blog on the perfect tense. The present perfect indicates either an action that started in the past and still continues, or an action that was done in the past but is somehow still present (through its influence, effects, consequences, etc.) Here, the "surge in retail sales" began in the past, and may still be continuing. Even if it is not still happening, the hopes it raised are still raised, and economists are responding to these raised hopes. This is why use the present perfect is excellent in this sentence.

Choice (C) has some other problems. Compare (C) to the OA, (D):
(C) had raised hopes for a recovery finally being under way . . .
(D) has raised hopes that a recovery is finally under way . . .
Choice (C) is indirect and awkward. It lacks power because it is weak and floppy. By contrast, (D) is direct, clear, and powerful. It's a different in the feel of the sentence. In terms of what we might be willing to believe or accept, (D) is a winner, and (C) is a loser.

As a general pattern, "for" + [noun] + "being" is a relatively indirect and weak way to phrase something. There's almost always a stronger and clearer way to say the same thing.

Does all this make sense?
Mike