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

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24 Feb 2009, 20:12
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58% (02:02) correct 42% (01:04) wrong based on 1172 sessions

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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
(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

[Reveal] Spoiler: OA
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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24 Feb 2009, 22:12
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eileen1017 wrote:
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
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

It --> has no clear reference
A,C,E --> OUT

D- a rise -- make (wrong sub-verb agreement)

B is the best.. (rising-adj) rates -- make (No problem with S-V agreement and also No agmbiguity)
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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25 Feb 2009, 08:52
use simple PoE and get B
sometimes PoE is great to save time

pronoun it(referrent prob) and S-V issues here

eileen1017 wrote:
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
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: SC GMATPrep 1 Federal Reserve [#permalink]

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25 Feb 2009, 10:11
B seems to be changing the meaning. A seems to be better (although I do not know how S-V is correct here).

What is the OA?
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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25 Feb 2009, 19:26
The OA is B. Thanks for the explanation.
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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25 Mar 2009, 02:17
It --> has no clear reference
A,C,E --> OUT

D- a rise -- make (wrong sub-verb agreement)

B is the best.. (rising-adj) rates -- make (No problem with S-V agreement and also No agmbiguity)

I think ACE are not out beacaue of lacking of clear referent..".
"It" is dummy object here....
see below example...

The aim of the new regulations is to make it easier for prospective homeowners to have funds available for energy improvement in their new houses.

(A) to make it easier for prospective homeowners to have
(B) to make easier for prospective homeowners the having of
(C) making it easier for prospective homeowners so they can have
(D) that prospective homeowners more easily can have
(E) for prospective homeowners to more easily have

A is right option in it....

Please correct me if i am wrong...
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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25 Mar 2009, 07:37
Yes Kuldeep your reasoning is prefect....
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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15 Mar 2010, 05:24
A is the only option which use "them" for consumer durable good
Hence the best choice
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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15 Mar 2010, 20:27
hardnstrong wrote:
A is the only option which use "them" for consumer durable good
Hence the best choice

them may also refer to alanysts. So, A is incorrect
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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16 Mar 2010, 03:34
x2suresh wrote:
eileen1017 wrote:
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
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

It --> has no clear reference
A,C,E --> OUT

D- a rise -- make (wrong sub-verb agreement)

B is the best.. (rising-adj) rates -- make (No problem with S-V agreement and also No agmbiguity)

Sorry to post a basic question here but I'm confused. Could someone please explain the S-V agreement here ? For me, "rising interest rates" could be a gerund verbal phrase so it could be a singular subject, couldn't it ?
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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23 Mar 2010, 11:28
I ruled out (B) because ...rising interest rates is the subject, and according the the mGMAT SC guide, if the subject is the the entire phrase or clause, a SINGULAR verb form should be used.

e.g.,

Having good friends IS a wonderful thing.

I went with A...

Edit: Just realized that ...rising interest rates is a participle + subject, and rising is used as an adjective, not a gerund (noun)!

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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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23 Mar 2010, 19:13
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Hey All,

Plenty of confusion here, so I thought it might be worth my weighing in:

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
(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

Okay looking here, we have a couple categories that should jump out. First is simple subject-verb agreement. We notice because the verb "make" goes singular and plural. A is out because "rising interest rates" are plural, so the verb shouldn't have an -s on the end. C and D are also out, because "a rise" is singular, so the verb should be "makes".

We're left with B and E. This is one of the VERY RARE times when it comes down to a concision/voice issue. What I mean is that B and E say the same thing, but E does it using the horribly wordy passive voice (to be bought). Notice that both B and E have a bad pronoun (them is highly ambiguous, because it could refer to durable goods, orders, interest rates...almost anything), but because they BOTH have it, we don't need to worry about this issue.

The correct answer is B. Hope that helps!

-t
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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20 Jun 2010, 12:47
karlovy wrote:
x2suresh wrote:
eileen1017 wrote:
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
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

It --> has no clear reference
A,C,E --> OUT

D- a rise -- make (wrong sub-verb agreement)

B is the best.. (rising-adj) rates -- make (No problem with S-V agreement and also No agmbiguity)

Sorry to post a basic question here but I'm confused. Could someone please explain the S-V agreement here ? For me, "rising interest rates" could be a gerund verbal phrase so it could be a singular subject, couldn't it ?

Same problem here...How do you know that rising is and adjective and not a gerund?
Thanks.
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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20 Jun 2010, 17:33
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Hey All,

A gerund is an -ing word that is a NOUN formed from a verb. "The running of the bulls", for example. A participle is an -ing or -ed word that is an ADJECTIVE formed from a verb. If I say "rising interest rates", "rising" is clearly an adjective/participle modifying "interest rates". If I said, "The sun's rising came as a shock", now "rising" has become a noun/gerund. Is that clear?

-tommy
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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20 Jun 2010, 23:53
tommy

I don't think "it" really refers to anything in choice E. it is singular hence cannot refer to goods.
them to be brought on credit ----> so i think them refers to goods.

Correct me if I'm wrong.

I agree E is passive.

TommyWallach wrote:
Notice that both B and E have a bad pronoun (them is highly ambiguous, because it could refer to durable goods, orders, interest rates...almost anything), but because they BOTH have it, we don't need to worry about this issue.

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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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21 Jun 2010, 18:36
Hey Nusma,

That's a tough one. We sometime use "it" without a referent, so I'd allow it in answer choice E. An example of this would be "It's crazy how hot it is today." Neither "it" refers to anything, but we allow it (ha!). The bigger problem with E is the "them".

Hope that makes sense!

-t
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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05 Jul 2010, 14:47
TommyWallach wrote:
Hey All,

A gerund is an -ing word that is a NOUN formed from a verb. "The running of the bulls", for example. A participle is an -ing or -ed word that is an ADJECTIVE formed from a verb. If I say "rising interest rates", "rising" is clearly an adjective/participle modifying "interest rates". If I said, "The sun's rising came as a shock", now "rising" has become a noun/gerund. Is that clear?

-tommy

Is not so clear.
"Rising rates is a measure taken by the Federal Reserve to bla bla bla..."
In this case Rising is a gerund, and therefore Singular.

In this SC question, i dont see that "rising" is an adjective modifying rates...
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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07 Jul 2010, 09:28
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Hey Noburu,

"Rising rates..." is not a gerund. "Rising" is simply an adjective (participle) modifying the NOUN rates. Gerund's are when the "-ing" word ITSELF is the noun: "The rising of the sun is beautiful", or "The running of the bulls is a lot of fun." See how, in those examples, "rising" and "running" are the actual nouns?

If an -ing word modifies another noun, we call it a participle, which is functionally an adjective (like a gerund is functionally a noun): "The rising tide is coming." "The flying monkeys are going to eat us!" etc.

Hope that helps!

-tommy
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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30 Jul 2010, 04:27
TommyWallach wrote:
Hey Noburu,

"Rising rates..." is not a gerund. "Rising" is simply an adjective (participle) modifying the NOUN rates. Gerund's are when the "-ing" word ITSELF is the noun: "The rising of the sun is beautiful", or "The running of the bulls is a lot of fun." See how, in those examples, "rising" and "running" are the actual nouns?

If an -ing word modifies another noun, we call it a participle, which is functionally an adjective (like a gerund is functionally a noun): "The rising tide is coming." "The flying monkeys are going to eat us!" etc.

Hope that helps!

-tommy

Im still not catching this thing.

I understand your points, and I see that an -ing can be both an adjective modifying a noun and a gerund.

However, look at this example:
Rising rates IS the measure taken by the Goverment to...

Here, rising is a gerund, isnt it?

It is referring to the action of rising (rates), not to the rates.

Very confusing stuff.
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Re: SC GMATPrep 1 Federal Reserve [#permalink]

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30 Jul 2010, 06:54
B.. clear, concise and meaning stated perfectly.
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Re: SC GMATPrep 1 Federal Reserve   [#permalink] 30 Jul 2010, 06:54

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