Even though recent national statistics suggest a

(C) INCORRECT... the construction is awkward
(D) INCORRECT... same as (C)
(E) INCORRECT... passive construction is not required.

Between (A) and (B),
IMHO,infinitive is more proper to show the intention.Hence (B)

Please correct me if anything is wrong.
Thanks

in the pattern
main clause+ to do
to do shows a future action done by subject of main clause.
so
in choice B, the board perform the action of "stimulate". this is logic.

"for doing" is used to show a purpose of a noun, not a clause.
the pen for writing is mine.

in phrase "for doing", doing refers to a general action not belonging to any specific noun in the sentence
compare
I learn gmat to take MBA.
this means I learn gmat so that I take an MBA. this is logic.

I learn gmat for taking an MBA

taking dose not refer to "I" , taking refers to general action of anybody.
so, I can understand that

I learn gmat so that anybody take an MBA. this is not logic.

gmat test to do/doing a lot. and this is a hard point.

The whole sentence is in “simple present” tense. So, the use of “present continuous - stimulating” is wrong here. Hence, A, C and D are out. E could be eliminated for unnecessary use of passive voice in the sentence. Hence, B is the answer.

A.the Federal Reserve Board needs to lower short-term interest rates further for stimulating
Use of "for" + gerund is incorrect replacement for infinitive of purpose (reason for verb).

B.the Federal Reserve Board needs to lower short-term interest rates further in order to stimulate
Correct.

C.the need is for the Federal Reserve Board to lower short-term interest rates further for stimulating
Unclear what need it is referring to.

D.there need to be a further lowering by the Federal Reserve Board of short-term interest rates for the purpose of stimulating
S-V agreement. "There need" should be "There needs" since "There" refers to gerund "lowering."

E.short-term interest rates need to be lowered further by the Federal Reserve Board so as to stimulate
Passive voice not preferred. I feel like "So as to" is not correct here, but I'm not sure why.

Hi, Can anyone explain what is the problem in "E" , apart from the fact that it is Passive voice. I chose E because it says "lowered further", the adverb here is near the verb. So it makes more sense ?

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________