Every three months an index of leading economic indicators for the preceding quarter is released by the U.S. Commerce Department, that provides economists with the basis for bleak or hopeful forecasts.
(A) Every three months an index of leading economic indicators for the preceding quarter is released by the U.S. Commerce Department,
that provides economists with the basis for bleak or hopeful forecasts
"that" always points to the nearest noun and here the nearest noun is Commerce Department. U.S. Commerce Department doesn't provide the basis for forecasts. Instead, it is the index of leading economic indicators for the preceding quarter that provides the basis for forecast(B) Every three months, the U.S. Department of Commerce, by providing economists with the basis for bleak or hopeful forecasts, releases an index of leading economic indicators for the preceding quarter
--> Clear change in meaning(C) Every three months, the U.S. Commerce Department releases an index of leading economic indicators for the preceding quarter,
providing economists with the basis for bleak or hopeful forecasts
--> CORRECT(D) Having released an index of leading economic indicators for the preceding quarter, every three months the U.S. Commerce Department provides economists with the basis for bleak or hopeful forecasts
Again change in meaning and awkward. Commerce department doesn't provide economists with the basis for forecasts every 3 months. Rather, the department releases index of leading economic indicators every 3 months(E) Every three months, the U.S. Commerce Department releases an index of leading economic indicators for the preceding quarter,
provides the basis for economists' making bleak or hopeful forecasts
Here the structure of the sentence is: Department releases X, provides Y. This is incorrect. Correct structure should be : Release of X leads to Y. Kudos plz if my reply helped. Need to unlock G M A T club tests