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# Noting that the Federal Reserve had raised a key short-term

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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17 Jun 2014, 08:07
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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28 Jul 2014, 09:26
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Noting that the Federal Reserve had raised a key short-term interest rate again last month, analysts said that they expected orders for durable goods to decline soon because rising interest makes it more expensive to buy them on credit

(A) rising interest makes it more expensive to buy them on credit
(B) rising interest rates make buying on credit more expensive
(C) a rise in interest rates make it more expensive to buy on credit
(D) a rise in interest rates make buying on credit more expensive
(E) a rise in interest rates makes it more expensive for them to be bought on credit
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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28 Jul 2014, 11:23
I am not English native. Sorry, what is the real diference of rising interest and a rise in interest?

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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28 Jul 2014, 11:56
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tuliosoria wrote:
I am not English native. Sorry, what is the real diference of rising interest and a rise in interest?

Best!
Tulio Soria

rising -- continuous process -- thus rising interest = interest that are proportionally increasing with time.
A rise in interest = just one time rise in interest.
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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28 Jul 2014, 12:05
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What is wrong with A. In B meaning is changing.
interest != interest rates.

Interest means actual amount $$= \frac{interest rate}{100}* Principle$$

A is presenting place holder it concept.

A. rising interest makes it more expensive to buy them on credit
-rising interest makes 'to buy goods on credit' more expensive

A) rising interest makes it more expensive to buy them on credit -- looks grammatically fine.
(B) rising interest rates make buying on credit more expensive -- change in meaning -- grammatically fine.
(C) a rise in interest rates make it more expensive to buy on credit -- S-V error.
(D) a rise in interest rates make buying on credit more expensive -- S-V error.
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- expensive for goods -- nonsensical.
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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28 Jul 2014, 20:21
In A , there is no clear antecedent for pronoun "it".

And also , rising interest may not make things expensive.
for e.g. lets say interest has rose from 1000 to 1010 i.e increase of 10--not much significant
where as if interest rate rises by 10%, 1000 to 100, then increase is significant,so can make things more expensive.

So it's always logical to write increase in interest rate rather than increase in interest amount to present the clear picture.

PiyushK wrote:
What is wrong with A. In B meaning is changing.
interest != interest rates.

Interest means actual amount $$= \frac{interest rate}{100}* Principle$$

A is presenting place holder it concept.

A. rising interest makes it more expensive to buy them on credit
-rising interest makes 'to buy goods on credit' more expensive

A) rising interest makes it more expensive to buy them on credit -- looks grammatically fine.
(B) rising interest rates make buying on credit more expensive -- change in meaning -- grammatically fine.
(C) a rise in interest rates make it more expensive to buy on credit -- S-V error.
(D) a rise in interest rates make buying on credit more expensive -- S-V error.
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- expensive for goods -- nonsensical.

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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29 Jul 2014, 05:17
bharat3khanna wrote:
In A , there is no clear antecedent for pronoun "it".

And also , rising interest may not make things expensive.
for e.g. lets say interest has rose from 1000 to 1010 i.e increase of 10--not much significant
where as if interest rate rises by 10%, 1000 to 100, then increase is significant,so can make things more expensive.

So it's always logical to write increase in interest rate rather than increase in interest amount to present the clear picture.

But here use of pronoun it is grammatically correct. I hope you are aware of "placeholder it" concept. If yes don't you think that such type of construction is used in option A.

Further we do not care in SC whether rate or amount will impact something in some way. Point is that they are not interchangeable.

give it a thought.
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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29 Jul 2014, 19:40
Hi,
Was just confused if the correct answer is A or B.
My understanding is the correct answer is B because interest rates is rising with the time.In A,interest amount is rising and not the interest rate.
Moderator, kindly clarify the correct answer.

Thanks,

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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29 Jul 2014, 22:40
I'm always suspicious when I see "it". Unless there is a clear singular antecedent, it's usually wrong.
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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31 Jul 2014, 23:02
Hello Piyush,

In Choice B . Does "buying more expensive" makes sense? Should it not be "buying of good more expensive"? Can I use this reasoning to eliminate the choice B? Please help!!

Thanks Anuj!

PiyushK wrote:
What is wrong with A. In B meaning is changing.
interest != interest rates.

Interest means actual amount $$= \frac{interest rate}{100}* Principle$$

A is presenting place holder it concept.

A. rising interest makes it more expensive to buy them on credit
-rising interest makes 'to buy goods on credit' more expensive

A) rising interest makes it more expensive to buy them on credit -- looks grammatically fine.
(B) rising interest rates make buying on credit more expensive -- change in meaning -- grammatically fine.
(C) a rise in interest rates make it more expensive to buy on credit -- S-V error.
(D) a rise in interest rates make buying on credit more expensive -- S-V error.
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- expensive for goods -- nonsensical.

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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02 Aug 2014, 21:30
PiyushK wrote:
What is wrong with A. In B meaning is changing.
interest != interest rates.

Interest means actual amount $$= \frac{interest rate}{100}* Principle$$

A is presenting place holder it concept.

A. rising interest makes it more expensive to buy them on credit
-rising interest makes 'to buy goods on credit' more expensive

A) rising interest makes it more expensive to buy them on credit -- looks grammatically fine.
(B) rising interest rates make buying on credit more expensive -- change in meaning -- grammatically fine.
(C) a rise in interest rates make it more expensive to buy on credit -- S-V error.
(D) a rise in interest rates make buying on credit more expensive -- S-V error.
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- expensive for goods -- nonsensical.

Would option C have been right , had "make" beeen "makes" ?

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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03 Aug 2014, 00:50
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PiyushK wrote:
What is wrong with A. In B meaning is changing.
interest != interest rates.

Interest means actual amount $$= \frac{interest rate}{100}* Principle$$

A is presenting place holder it concept.

A. rising interest makes it more expensive to buy them on credit
-rising interest makes 'to buy goods on credit' more expensive

A) rising interest makes it more expensive to buy them on credit -- looks grammatically fine.
(B) rising interest rates make buying on credit more expensive -- change in meaning -- grammatically fine.
(C) a rise in interest rates make it more expensive to buy on credit -- S-V error.
(D) a rise in interest rates make buying on credit more expensive -- S-V error.
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- expensive for goods -- nonsensical.

Yes, interest and interest rates are different. "Interest" is incorrect in this case because it is mentioned in the previous sentence that the Federal Reserve had raised a key short-term interest rate, so the rise here should refer to "interest rate" instead of "interest".
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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25 Sep 2014, 07:07
Hello from the GMAT Club VerbalBot!

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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22 Jan 2015, 20:13
Hi,
Every they, them and their refer to the same plural antecedent in the sentence. Therefore, them in A and D refers to the analysts and makes the sentences illogical.
Now C & D can be eliminated based on Sub - verb agreement (A rise, make)
Hence D.

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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22 Jan 2015, 21:02
PiyushK wrote:
What is wrong with A. In B meaning is changing.
interest != interest rates.

Interest means actual amount $$= \frac{interest rate}{100}* Principle$$

A is presenting place holder it concept.

A. rising interest makes it more expensive to buy them on credit
-rising interest makes 'to buy goods on credit' more expensive

A) rising interest makes it more expensive to buy them on credit -- looks grammatically fine.
(B) rising interest rates make buying on credit more expensive -- change in meaning -- grammatically fine.
(C) a rise in interest rates make it more expensive to buy on credit -- S-V error.
(D) a rise in interest rates make buying on credit more expensive -- S-V error.
(E) a rise in interest rates makes it more expensive for them to be bought on credit -- expensive for goods -- nonsensical.

I think Option A is wrong because of "Meaning".

" rising interest makes it more expensive to buy them on credit" - Here rising interest can have more than one meaning.
Either it could be Rising interest rates or it could be rising interest among people who buy. So i guess it should be clear who or what is rising. So, I chose Option B as the answer.

That was my reasoning. If anything else, then would be glad to get a further clarification.

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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17 Jul 2015, 12:35
Hello from the GMAT Club VerbalBot!

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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08 Sep 2015, 15:35
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Noting that the Federal Reserve had raised a key short-term interest rate again last month, analysts said that they expected orders for durable goods to decline soon because rising interest makes it more expensive to buy them on credit

(A) rising interest makes it more expensive to buy them on credit
(B) rising interest rates make buying on credit more expensive
(C) a rise in interest rates make it more expensive to buy on credit
(D) a rise in interest rates make buying on credit more expensive
(E) a rise in interest rates makes it more expensive for them to be bought on credit

(A) rising interest makes it more expensive to buy them on credit - "them" has not clear antecedent, to buy what on credit?
(B) rising interest rates make buying on credit more expensive - Correct one
(C) a rise in interest rates make it more expensive to buy on credit - Should be "makes"
(D) a rise in interest rates make buying on credit more expensive - Should be "makes"
(E) a rise in interest rates makes it more expensive for them to be bought on credit - Long and awkward

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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10 Sep 2015, 19:17
it seems that on gmat land there is only pattern

make it clear +that clause

and there is no pattern

make it clear+to do
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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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10 Sep 2015, 21:00
"make" should be "makes" in option B, because "rising interest rates" is singular. Is that right?

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Re: Noting that the Federal Reserve had raised a key short-term [#permalink]

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10 Sep 2015, 22:21
make" should be "makes" in option B, because "rising interest rates" is singular. I have the same doubt.
This make the choice ambiguous. IS there any order that SV over pronoun or other way around ??

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Re: Noting that the Federal Reserve had raised a key short-term   [#permalink] 10 Sep 2015, 22:21

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