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noboru
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IMO B

Because of the business community’s uncertainty about the President’s position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.

(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has
(B) on the deficit, an unanticipated rise in interest rates has
(C) regarding the budgetary deficit, an unanticipated rise in interest rates have
(D) on the deficit, an unanticipated rise in interest rates have
(E) regarding the deficit, an unanticipated rise in interest rats have

an unanticipated rise is singular, so we need singular verb has, we can eliminate C,D,E

A is wordy in that , deficit itself is an issue, we dont need to elaborate it as "issue of the budget deficit"
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B.

165. Because of the business community’s uncertainty about the President’s position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.

(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has
wordy
(B) on the deficit, an unanticipated rise in interest rates has
subject verb agreement (rise...has)
(C) regarding the budgetary deficit, an unanticipated rise in interest rates have
(D) on the deficit, an unanticipated rise in interest rates have
(E) regarding the deficit, an unanticipated rise in interest rats have
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maybeam
Because of the business community’s uncertainty about the President’s position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.

(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has

(B) on the deficit, an unanticipated rise in interest rates has

(C) regarding the budgetary deficit, an unanticipated rise in interest rates have

(D) on the deficit, an unanticipated rise in interest rates have

(E) regarding the deficit, an unanticipated rise in interest rats have


Option A, C, and E can be negated just by the unnecessary wordiness, because in regard, regarding are just making the sentence wordy.
We are left with just 2 options B and D and we have to choose between has/have. For that we have to look at the subject and the subject here is Business Community's uncertainty which is singular, So out of the 2 I pick B.
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Went with B.. then changed it :( have to remind myself to stick to the rules ;(

rise - singular- has..

Only First 2. A is more wordy. Hence B
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position in -when you have vacancies - Position On- when you have some opinion or point of view

rise of interest rates- Singular

So B is the correct one
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POE - B

Eliminated C,D, and E for using "have"

A is wordy.

B uses the singular verb 'has' ..
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yes!
B omits "budget". I had the same doubt.
How do we know which deficit is it?

Still the official answer is B.
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In option "B" Meaning has been changed , because the omition "Budget"
Then question comes what deficit .....
As original sentence says ..it is to be budget deficit , then it must be maintained in the option too ...
So I cant agree with B .
OA is given ,it does not mean that I may not be wrong ever .....
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B cannot be correct. what deficit? this is illogical.
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OA is B.
Considering the GMAT test-takers' background, it is common sense that "deficit" is equal to "U.S. government budget deficit"
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A) Seems fine to me
B) Position on the deficit…I think it distorted the meaning of the original sentence
C) Have is not the correct verb
D) Have is not the correct verb
E) Same as C and D
Id go with A
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blayel,

thanks for pointing this one out. If we have to add the "on" after position, then the use of "in regard to" isn't possible anymore, right?

Like you all discussed, B is a lot cleaner, however I hate the budget issue here. Doubt the GMAT question would ever bring in such "common sense" example. There are different deficits and A makes this clear distinction. In B, the meaning is a lot different than in A, at least for non-US guys, and creating such ambiguity isn't really GMAC's favourite sport.
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Same question as everyone else, how can it be B when it doesn't mention what deficit it is?
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maybeam
Because of the business community’s uncertainty about the President’s position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.

(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has

(B) on the deficit, an unanticipated rise in interest rates has

(C) regarding the budgetary deficit, an unanticipated rise in interest rates have

(D) on the deficit, an unanticipated rise in interest rates have

(E) regarding the deficit, an unanticipated rise in interest rats have

Although B is grammatically correct, the meaning of the sentence is inconsistent because the word "budget" is omitted. Are you sure that it is not a typo?
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maybeam
Because of the business community’s uncertainty about the President’s position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.

(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has

(B) on the deficit, an unanticipated rise in interest rates has

(C) regarding the budgetary deficit, an unanticipated rise in interest rates have

(D) on the deficit, an unanticipated rise in interest rates have

(E) regarding the deficit, an unanticipated rise in interest rats have

Although B is grammatically correct, the meaning of the sentence is inconsistent because the word "budget" is omitted. Are you sure that it is not a typo?

Mank123
Same question as everyone else, how can it be B when it doesn't mention what deficit it is?

Yes, it seems to be a typo. Such omissions are not expected in the real GMAT.
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#MY10SECONDAPPROACH:
singular subject "Rise" in rates will carry singular verb "has" , throws out options C,D & E with "have" as the verb.
Word position comes with conjunction "ON" hence answer option B is the correct answer.
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noboru
Because of the business community’s uncertainty about the President’s position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.

(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has
(B) on the deficit, an unanticipated rise in interest rates has
(C) regarding the budgetary deficit, an unanticipated rise in interest rates have
(D) on the deficit, an unanticipated rise in interest rates have
(E) regarding the deficit, an unanticipated rise in interest rats have


The verb "has" is required because the subject is "an unanticipated rise" is singular. The answer is B.
Option A is wordy and awkward.
C is wordy too.
D wrong verb "have"
E wrong verb "have".
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