Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 25 May 2017, 08:07

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# One view of the economy contends that a large drop in oil

Author Message
TAGS:

### Hide Tags

CEO
Joined: 20 Nov 2005
Posts: 2898
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Followers: 25

Kudos [?]: 289 [1] , given: 0

One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

20 Aug 2006, 22:17
1
KUDOS
6
This post was
BOOKMARKED
00:00

Difficulty:

25% (medium)

Question Stats:

68% (01:42) correct 32% (00:58) wrong based on 419 sessions

### HideShow timer Statistics

One view of the economy contends that a large drop in oil prices should eventually lead to lowering interest rates, as well as lowering fears about inflation, a rally in stocks and bonds, and a weakening of the dollar.

(A) lowering interest rates, as well as lowering fears about inflation,
(B) a lowering of interest rates and of fears about inflation,
(C) a lowering of interest rates, along with fears about inflation,
(D) interest rates being lowered, along with fears about inflation,
(E) interest rates and fears about inflation being lowered, with
[Reveal] Spoiler: OA

_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Last edited by ankurgupta03 on 10 Apr 2014, 13:03, edited 1 time in total.
If you have any questions
New!
Intern
Joined: 09 Aug 2006
Posts: 36
Followers: 0

Kudos [?]: 0 [0], given: 0

### Show Tags

21 Aug 2006, 00:35
I'd go with (B), because a lowering is parallel with a rally and a weakening.
Director
Joined: 06 Feb 2006
Posts: 898
Followers: 3

Kudos [?]: 112 [0], given: 0

### Show Tags

21 Aug 2006, 02:11
This one is clearly between B and C....

I choose B because in C along with fears about inflation is not parallel to a rally and a weakening.....
Current Student
Joined: 29 Jan 2005
Posts: 5221
Followers: 26

Kudos [?]: 403 [0], given: 0

### Show Tags

21 Aug 2006, 02:15
a drop in X should lead to a lowering in Y~

(B) is better than C because both interest rates and fears are being lowered.
CEO
Joined: 20 Nov 2005
Posts: 2898
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Followers: 25

Kudos [?]: 289 [0], given: 0

### Show Tags

21 Aug 2006, 07:01
GMATT73 wrote:
a drop in X should lead to a lowering in Y~

(B) is better than C because both interest rates and fears are being lowered.

OA is B.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Current Student
Joined: 28 Dec 2004
Posts: 3363
Location: New York City
Schools: Wharton'11 HBS'12
Followers: 15

Kudos [?]: 297 [0], given: 2

### Show Tags

25 Jul 2007, 12:11
goin with B..

PS-Dhayia...come on now that was an easy one...one would expect a tough SC from you...
VP
Joined: 15 Jul 2004
Posts: 1457
Schools: Wharton (R2 - submitted); HBS (R2 - submitted); IIMA (admitted for 1 year PGPX)
Followers: 22

Kudos [?]: 195 [0], given: 13

### Show Tags

25 Jul 2007, 12:37
fresinha12 wrote:
goin with B..

PS-Dhayia...come on now that was an easy one...one would expect a tough SC from you...

These are very old posts
Senior Manager
Joined: 28 Jun 2007
Posts: 458
Followers: 3

Kudos [?]: 8 [0], given: 0

### Show Tags

26 Jul 2007, 00:17
Between B and C, I chose B.

Along with was unnecessary. and was better.
Manager
Joined: 27 Oct 2011
Posts: 187
Location: United States
Concentration: Finance, Strategy
GPA: 3.7
WE: Account Management (Consumer Products)
Followers: 5

Kudos [?]: 172 [0], given: 4

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

28 Jan 2012, 17:11
b
this is parallelism. and we must parallel lowering to a rally and a weakening, which B does.
_________________

DETERMINED TO BREAK 700!!!

Manager
Joined: 23 May 2013
Posts: 126
Followers: 1

Kudos [?]: 62 [0], given: 110

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

29 Nov 2013, 08:12
THe correct answer here is B.

However i am confused how come below 2 clauses are parallel

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

1 and 3 are parallel, but 1 and 2 is not. Shouldn't 2 be a 'rallying stocks and bonds' for it to be parallel?

Posted from my mobile device
_________________

“Confidence comes not from always being right but from not fearing to be wrong.”

e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2022
Followers: 2214

Kudos [?]: 7745 [0], given: 291

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

20 Dec 2013, 17:43
ankur1901 wrote:
THe correct answer here is B.

However i am confused how come below 2 clauses are parallel

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

1 and 3 are parallel, but 1 and 2 is not. Shouldn't 2 be a 'rallying stocks and bonds' for it to be parallel?

Posted from my mobile device

Hi Ankur,

Thanks for posting your doubt here.

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

First of all, just a correction in understanding here. These three entities are not clauses. they are phrases. Clauses must have Subjects and Verbs. None of these entities have a Subject or a Verb. So they are all phrases.

Now, if you carefully notice, the last two entities in the parallel list lie in the non-underlined portion of the sentence. That means they are correct. here itself we see that entity two - a proper noun entity - is parallel to entity three - a verb-ing of noun entity. So this is accepted in GMAT. Why? The answer to that is verb-ing noun form of a word acts as a noun only (gerund, if you are more familiar with this term), and hence a two noun entities are grammatically parallel.

Now, here one thing we must pay attention to that is the verb-ing word must be a noun form of a word in order to be grammatically parallel to another noun entity. In case, the verb-ing word is a modifier then it CANNOT be grammatically parallel to a noun entity. This is the case with the original official sentence.

This error has been rectified in choice B.

Hope this helps.
Thanks.
_________________

| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Manager
Joined: 15 Mar 2012
Posts: 69
Followers: 0

Kudos [?]: 5 [0], given: 20

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

10 Apr 2014, 02:35
Why is option C wrong?
c: a lowering of interest rates, along with fears about inflation

egmat wrote:
ankur1901 wrote:
THe correct answer here is B.

However i am confused how come below 2 clauses are parallel

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

1 and 3 are parallel, but 1 and 2 is not. Shouldn't 2 be a 'rallying stocks and bonds' for it to be parallel?

Posted from my mobile device

Hi Ankur,

Thanks for posting your doubt here.

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

First of all, just a correction in understanding here. These three entities are not clauses. they are phrases. Clauses must have Subjects and Verbs. None of these entities have a Subject or a Verb. So they are all phrases.

Now, if you carefully notice, the last two entities in the parallel list lie in the non-underlined portion of the sentence. That means they are correct. here itself we see that entity two - a proper noun entity - is parallel to entity three - a verb-ing of noun entity. So this is accepted in GMAT. Why? The answer to that is verb-ing noun form of a word acts as a noun only (gerund, if you are more familiar with this term), and hence a two noun entities are grammatically parallel.

Now, here one thing we must pay attention to that is the verb-ing word must be a noun form of a word in order to be grammatically parallel to another noun entity. In case, the verb-ing word is a modifier then it CANNOT be grammatically parallel to a noun entity. This is the case with the original official sentence.

This error has been rectified in choice B.

Hope this helps.
Thanks.
Intern
Joined: 19 Apr 2012
Posts: 15
Concentration: Technology, General Management
GMAT Date: 06-26-2014
GPA: 4
WE: Programming (Computer Software)
Followers: 0

Kudos [?]: 2 [0], given: 30

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

12 Apr 2014, 07:40
C is wrong because "a lowering of interest rates, along with fears about inflation" is not parallel. While in B: a lowering of interest rates and of fears about inflation are parallel.

divineacclivity wrote:
Why is option C wrong?
c: a lowering of interest rates, along with fears about inflation

egmat wrote:
ankur1901 wrote:
THe correct answer here is B.

However i am confused how come below 2 clauses are parallel

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

1 and 3 are parallel, but 1 and 2 is not. Shouldn't 2 be a 'rallying stocks and bonds' for it to be parallel?

Posted from my mobile device

Hi Ankur,

Thanks for posting your doubt here.

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

First of all, just a correction in understanding here. These three entities are not clauses. they are phrases. Clauses must have Subjects and Verbs. None of these entities have a Subject or a Verb. So they are all phrases.

Now, if you carefully notice, the last two entities in the parallel list lie in the non-underlined portion of the sentence. That means they are correct. here itself we see that entity two - a proper noun entity - is parallel to entity three - a verb-ing of noun entity. So this is accepted in GMAT. Why? The answer to that is verb-ing noun form of a word acts as a noun only (gerund, if you are more familiar with this term), and hence a two noun entities are grammatically parallel.

Now, here one thing we must pay attention to that is the verb-ing word must be a noun form of a word in order to be grammatically parallel to another noun entity. In case, the verb-ing word is a modifier then it CANNOT be grammatically parallel to a noun entity. This is the case with the original official sentence.

This error has been rectified in choice B.

Hope this helps.
Thanks.
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2022
Followers: 2214

Kudos [?]: 7745 [6] , given: 291

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

14 May 2014, 04:30
6
KUDOS
Expert's post
divineacclivity wrote:
Why is option C wrong?
c: a lowering of interest rates, along with fears about inflation

egmat wrote:
ankur1901 wrote:
THe correct answer here is B.

However i am confused how come below 2 clauses are parallel

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

1 and 3 are parallel, but 1 and 2 is not. Shouldn't 2 be a 'rallying stocks and bonds' for it to be parallel?

Posted from my mobile device

Hi Ankur,

Thanks for posting your doubt here.

1. a lowering of interest rates and of fears about inflation
2. a rally in stocks and bonds
3. and a weakening of the dollar

First of all, just a correction in understanding here. These three entities are not clauses. they are phrases. Clauses must have Subjects and Verbs. None of these entities have a Subject or a Verb. So they are all phrases.

Now, if you carefully notice, the last two entities in the parallel list lie in the non-underlined portion of the sentence. That means they are correct. here itself we see that entity two - a proper noun entity - is parallel to entity three - a verb-ing of noun entity. So this is accepted in GMAT. Why? The answer to that is verb-ing noun form of a word acts as a noun only (gerund, if you are more familiar with this term), and hence a two noun entities are grammatically parallel.

Now, here one thing we must pay attention to that is the verb-ing word must be a noun form of a word in order to be grammatically parallel to another noun entity. In case, the verb-ing word is a modifier then it CANNOT be grammatically parallel to a noun entity. This is the case with the original official sentence.

This error has been rectified in choice B.

Hope this helps.
Thanks.

Hi divineacclivity,

Thank you for the post.

Let’s do the sentence structure and meaning analysis for the original sentence and option C to find out why option C is wrong.

ORIGINAL SENTENCE

One view of the economy contends
o that a large drop in oil prices should eventually lead to
• lowering interest rates, as well as lowering fears about inflation,
• a rally in stocks and bonds,
• and a weakening of the dollar.

As shown, the drop in oil prices should lead to three things:

1. i) lowering interest rates
ii) as well as lowering fears about inflation

2. a rally in stocks and bonds

3. and a weakening of the dollar.

Now, let’s do the same for option C.

OPTION C

One view of the economy contends
o that a large drop in oil prices should eventually lead to
• a lowering of interest rates, along with fears about inflation,
• a rally in stocks and bonds,
• and a weakening of the dollar.

According to this option, the drop in oil prices should lead to three things:

1. i) a lowering of interest rates,
ii) along with fears about inflation

2. a rally in stocks and bonds

3. and a weakening of the dollar.

This choice says that a drop in oil prices will eventually lead to fears about inflation. This is not the intended meaning of the sentence. This change in the meaning happens since “of interest rates” is not parallel to “along with fears about inflation”. Let’s now see how this parallelism is correctly maintained in option B.

OPTION B

One view of the economy contends
o that a large drop in oil prices should eventually lead to
• a lowering
o of interest rates
o and of fears about inflation,
• a rally in stocks and bonds,
• and a weakening of the dollar.

In this option, “of interest rates” is parallel to “of fears about inflation”. So, the lowering effect is applicable on both.

Hope the above discussion helps!
Regards,

Deepak.
_________________

| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10366
Followers: 998

Kudos [?]: 225 [0], given: 0

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

10 Oct 2015, 23:54
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Intern
Joined: 30 Oct 2016
Posts: 18
Followers: 0

Kudos [?]: 0 [0], given: 107

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

18 Nov 2016, 22:18
i am just thinking that theoretically, a lowering rates will probably lead to inflation, right? little bit confused. Do we need to consider this problem?
Verbal Expert
Joined: 14 Dec 2013
Posts: 3041
Location: Germany
Schools: HHL Leipzig
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
Followers: 513

Kudos [?]: 2267 [1] , given: 22

One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

19 Nov 2016, 15:33
1
KUDOS
Expert's post
bjh wrote:
i am just thinking that theoretically, a lowering rates will probably lead to inflation, right? little bit confused. Do we need to consider this problem?

Not sure whether I understood your query correctly - the parallelism structure is as follows:

Drop in oil prices will lead to:
1. Lowering
1a. lowering of interest rates
1b. lowering of fears
2. Rally
3. Weakening
Intern
Joined: 30 Oct 2016
Posts: 18
Followers: 0

Kudos [?]: 0 [0], given: 107

Re: One view of the economy contends that a large drop in oil [#permalink]

### Show Tags

21 Nov 2016, 03:32
sayantanc2k wrote:
bjh wrote:
i am just thinking that theoretically, a lowering rates will probably lead to inflation, right? little bit confused. Do we need to consider this problem?

Not sure whether I understood your query correctly - the parallelism structure is as follows:

Drop in oil prices will lead to:
1. Lowering
1a. lowering of interest rates
1b. lowering of fears
2. Rally
3. Weakening

thanks! It's pretty clear now!
Re: One view of the economy contends that a large drop in oil   [#permalink] 21 Nov 2016, 03:32
Similar topics Replies Last post
Similar
Topics:
12 The oil-price drop creates vast numbers of winners 3 12 May 2016, 05:03
Advanced SC: One view of the economy contends that a large drop 3 01 May 2015, 02:20
2 One viewpoint of how to strengthen the economy 2 04 Jun 2015, 20:16
8 One view of the economy contends that a large drop in oil 17 01 Oct 2016, 05:54
1 One view of the economy contends that a large drop in oil 9 27 Mar 2012, 10:49
Display posts from previous: Sort by