The announced relocation of the hospital has been welcome news for the city, where economic growth has been stagnant
for the past several years.
A. city, where economic growth has been stagnant
B. city whose economic growth has been stagnant
C. city where economic growth has been stagnated
D. city, whose economic growth as been stagnated
E. city, the site of stagnated economic growth
Official answer says: The proper use of the words where and whose is being tested in this sentence. Whose refers to a being capable of making a decision, whereas where refers to a place. The sentence is also testing the correct use of a comma to join a subordinate clause to an independent clause.
While there is no better choice, but I don't agree with the statement: "Whose refers to a being capable of making a decision, whereas where refers to a place". Please refer to: http://grammar.ccc.commnet.edu/grammar/pronouns.htm
Whose can be used to refer to inanimate objects as well as to people (although there is a kind of folk belief that it should refer only to humans and other mammals): "I remember reading a book — whose title I can't recall right now — about a boy and a basenji."
Or refer to the following question: sc-1000-208-help-85536.html