"D" seems most obvious choice on two counts
1) the rate of xyz is singular.
2) E is redundant and B has unclear antecedent IT
pls feel free to correct me if i am wrong
D is certainly the choice.
But the reason of elimination of choices B is slightly off IMO.
1. B. There is no ambiguity about the antecedence of ‘it
‘. After all, the rate
is the only singular noun on the text and it can not refer to any thing else and that is the right antecedent. One can not argue, it stands for addition becos, it makes no sense to say that addition rises for loss
But B is wrong because of llism. The rate of addition uses an of
preposition while it rises for loss uses a for
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