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A) Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in

"sharp raise" i think is incorrect

B) Even as bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise in

B looks good to me

C) While the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rising of

"Sharp Rising of " is incorrect

D) Although the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise of

"'Rise of " is used in wrong context

E) Despite the bankruptcy reform appearing to head for a certain passage in the Congress, the economic omens point to a sharp rise in

awkward and changes the meaning

IMO B :)
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B is the best answer in my view.

Split #1: a sharp raise in vs a sharp rise in vs a sharp rising of vs a sharp rise of
In idiomatic terms, raise in, rise in, rising of, and rise of are all correct. The difference lies in the meaning. It is clear that raise/rise/rising are used in the context of the sentence as nouns. We need to determine whether the rise in/rising of/raise in bankruptcies is deliberate. From the context of the sentence, it is not deliberate as the non-underlined portion provides signals that suggest the negative effects of these bankruptcies. Based on this, a rise in is correct. We can say that John received a raise in his salary recently. Because a salary increase is intentional. Salaries do not increase on their own. We cannot, however, say that there was a raise in inflation rate. This is because inflation rate increases are under normal circumstances not intentional. The use of the gerund rising of as a noun is inferior to the use of rise as a noun. So, once there is an option that uses rise in correctly in the sentence, all things being equal, rising of is not optimum. If the preposition of were omitted and rising was used as a modifier, then it would be a different ball game altogether.
It is quite difficult for me to explain why rise of is not appropriate in the context. I just felt that rise in expresses the meaning better than rise of. I think that rise of gives more attention to the rise rather than to personal bankruptcies, while in rise in personal bankruptcies, personal bankruptcies seem to get the spotlight. Options A, C, and D can be eliminated based on the above.

Between B and E, the use of appearing in E is awkward. The use of the verb appears is better than the gerund appearing. We can, therefore, elminate E and be left with B as the best answer.

A very interesting and thought-provoking question. I will wait for the OE.

Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in personal bankruptcies over the next few years, signaling much pain for the many hard-pressed households, little, if any, gain for lenders, and major problems for the overall economy.

A) Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in

B) Even as bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise in

C) While the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rising of

D) Although the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise of

E) Despite the bankruptcy reform appearing to head for a certain passage in the Congress, the economic omens point to a sharp rise in
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Rising of or rise of takes a wrong preposition. So C, D are out.
Appearing incorrectly modifies the noun reform. Reform is the subject of the verb appear.so E is out.
I confused between A and B.
I cannot tell which conjunction is used correctly. However, after I chose A, I realized that there is one more difference between A and B, raise and rise. Raise requires object VS rise does not. Since preposition in follows the verb, B is right.

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Quote:
Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in personal bankruptcies over the next few years, signaling much pain for the many hard-pressed households, little, if any, gain for lenders, and major problems for the overall economy.

Quick scan of the option choices shows that the parts after "Congress," look similar, yet there are some differences.

A) Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in
- Incorrect. Let's look at nouns raise vs rise. Raise means increase in salary / wage, while rise means increase in something. On this ground, (A) is out. The beginning of the sentence makes sense to me "Just when a reform appears in Congress, the omens do stuff".

B) Even as bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise in
- Correct. As in (A), the beginning of the sentence totally makes sense to me: "even as a reform appears in Congress, the omens do stuff". Noun "rise" substituted "raise". Lastly, one can say "sharp rise in something".

C) While the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rising of
- Incorrect. The beginning of the sentence is probably fine, although one may argue that "while" is inferior to "just when" and "even as" in this particular sentence. The big problem is at the end of the sentence - "sharp rising of" is weird, it is better to use action noun "rise" instead of the gerund "rising". So, (C) is out.

D) Although the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise of
- Incorrect. Again, the beginning of the sentence is ok, but in the context of the sentence we should use "rise in", not "rise of".

E) Despite the bankruptcy reform appearing to head for a certain passage in the Congress, the economic omens point to a sharp rise in
- Incorrect. The beginning is wordy and has a strange from. (E) is inferior to (B) and even (D), which we already eliminated.

The answer is (B). This is a tough question, definitely on the 700-level side of the difficulty spectrum. I missed "a" in the word "raise" in option (A)... :dazed
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The official explanation is here.
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I think this is a great problem since it refreshes my memory for "rise" and conjunctions...

"raise" as noun is usually used for salary.
"raise" as verb is usually followed by a noun. e.g. I raised the car with one hand.

"rise" as noun can be used as "rise in" for increases in percentage, number, etc. and "rise of" for power, civilization, etc.
"rise" as verb isn't followed by any nouns. e.g. Tom rises early in the morning.
In addition, "rise" as verb can be followed by other prepositions, such as "rise by". e.g. The percentage of girls rises by 10%.



Conjunctions:

Although, even though, though, despite, however, but... all demonstrates a clear contrast. In addition, "despite" is only followed by noun, and "although" mostly by clauses, but sometimes noun as well.
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A) Just when bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp raise in
This was the runner up though rise in correct however B signalled a better useage therefore A was eleminated

B) Even as bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise in
rise in is the right usage and even projects the right meaning hence let us hang to this answer

C) While the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rising of
rising of isn't right usage it should be rise in and the premise is illogical

D) Although the bankruptcy reform appears headed for a certain passage in the Congress, the economic omens point to a sharp rise of
Similar reasoning as C

E) Despite the bankruptcy reform appearing to head for a certain passage in the Congress, the economic omens point to a sharp rise in
apperaing lends a illogical construct therefore out

Hence IMO B
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