Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

(A) rising interest rates makes it more expensive to buy them on credit -- subject-verb agreement issue -- rates makes
(B) rising interest rates make buying on credit more expensive -- Correct
(C) a rise in interest rates make it more expensive to buy on credit -- subject-verb agreement issue -- rise make
(D) a rise in interest rates make buying on credit more expensive -- subject-verb agreement issue -- rise make
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- passive and wordy

Answer B
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Hi nevergiveup,

Thank you for your question.

Let's start by tackling the most obvious difference between the answers: rising interest rates vs. a rise in interest rates.

When saying the phrase "a rise in interest rates," the writer means that the interest rates only have to rise ONCE for people to order fewer durable goods. This isn't the intended meaning - the original sentence says that people will slowly buy fewer durable goods over time as the interest rates continually go up. The phrase "rising interest rates" makes more sense here. Therefore, let's rule out the answers that use "a rise in interest rates": C, D, & E.

Now we're left with answers A & B. Let's look at what's different about them:

(A) rising interest rates makes it more expensive to buy them on credit
This sentence means that if interest rates go up, buying "them," meaning only durable goods, will be more expensive on credit. This isn't true - buying anything on credit is more expensive when interest rates go up. Therefore, this isn't the best answer to show intended meaning.

(B) rising interest rates make buying on credit more expensive
This one is the correct answer because it uses the proper phrase "rising interest rates," and correctly shows that if interest rates go up, buying anything and everything on credit is more expensive.
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Can someone explain if there is a strong enough reason to eliminate option E beacause of pronoun ambiguity??

Posted from my mobile device

adizephyr , belated welcome to GMAT Club.

Sidebar: The original version of the answer choices was edited. (I can tell from Tommy Wallach's explanation. Now option B does not include the pronoun THEM.)

Yes, adizephyr , the "strong enough reason" to eliminate E based on pronoun ambiguity is cemented by the absence of them in option B.

• First, in general, GMAC strongly prefers that pronouns of the same form (third person plural) refer to the same noun.
A few exceptions exist.
In the non-underlined portion, they refers to analysts
Typically, them would follow suit and refer to analysts, but that connection is absurd. Analysts are not bought on credit.

The only logical antecedent for them is durable goods.
Analyzed in isolation, it is not 100% clear whether pronoun ambiguity is "enough" to eliminate E.
If I were analyzing based on pronoun clarity alone, I would hold E until I compared it with another answer.

• Second, option B, which is grammatical and logical, does not include them, thus avoiding the pronoun issue.

If B contained a clear grammatical error or conveyed illogical or nonsensical meaning, then we could argue that the noun antecedent durable goods is the only logical candidate for them in option E

But (B) presents no such issue.

Choose B because it is grammatical, logical, and because it avoids this pronoun issue.

Hope that analysis helps.
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generis

Thank You for the explanation..

Posted from my mobile device

We don't know for sure that interest rates will keep rising. Notice that "rising" is just an adjective in (A) and (B), and we know that interest rates were raised AT LEAST once before (it's possible that the rates were raised several times before). Regardless of how long the rates have been rising, we can certainly say that interest rates have, in fact, been rising!

Because interest rates have been rising, analysts expect orders for durable goods to decline soon. Now it is certainly possible that the Federal Reserve lowers interest rates next month and that orders for durable goods don't change much. But the analysts' logic remains sound:

1) "rising interest rates make buying on credit more expensive"
2) Interest rates have been rising recently (for however long)
3) Therefore, we expect orders for durable goods to decline soon

Whether interest rates actually continue to rise isn't important.

I hope that helps!
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i am sory. i am wrong in previous posting

"make it+adjective +for somebody to do" is an idiom to remember on gmat.