GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 29 Jan 2020, 09:50

### 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

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

Author Message
TAGS:

### Hide Tags

SVP
Joined: 20 Nov 2005
Posts: 1999
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

Updated on: 07 Dec 2018, 06:12
8
34
00:00

Difficulty:

35% (medium)

Question Stats:

68% (01:19) correct 32% (01:26) wrong based on 1549 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

The Official Guide for GMAT Review, 10th Edition, 2003

Practice Question
Question No.: SC 201
Page: 685

The Official Guide for GMAT Review, 11th Edition, 2005

Practice Question
Question No.: SC 132
Page: 659

_________________
SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Originally posted by ps_dahiya on 20 Aug 2006, 22:17.
Last edited by Bunuel on 07 Dec 2018, 06:12, edited 4 times in total.
Renamed the topic and edited the question.
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2941
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

14 May 2014, 04:30
20
1
4
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.
_________________
##### General Discussion
Intern
Joined: 09 Aug 2006
Posts: 22
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

21 Aug 2006, 00:35
2
I'd go with (B), because a lowering is parallel with a rally and a weakening.
Manager
Status: May The Force Be With Me (D-DAY 15 May 2012)
Joined: 06 Jan 2012
Posts: 185
Location: India
Concentration: General Management, Entrepreneurship
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

17 Feb 2012, 21:22
2
1
Hi,

This is a parallelism error & the first clue to that is " lowering interest rates, as well as lowering fears about inflation, a rally in stocks and bonds, and a weakening of the dollar. "

Thus the answer choice must have a lowering interest rate => narrow down to B & C

B has a parallel structure " a lowering of interest rates and of fears about inflation," hence is correct

C is wordy & awkward
Manager
Joined: 29 Jun 2011
Posts: 83
WE 1: Information Technology(Retail)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

26 Feb 2012, 04:57
1
IMO B,

It tests parallelism.Hence statement B is correct.
B. One view of the economy contends that a large drop in oil prices should eventually lead to a lowering of interest rates and of fears about inflation, a rally in stocks and bonds, and a weakening of the dollar.

I know statement B is correct but "fears about inflation"... doesn't seem to be idiomatic.Please explain why this is correct??
Intern
Joined: 24 Dec 2011
Posts: 12
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

26 Feb 2012, 09:04
1
1
Babzsn84 wrote:

I know statement B is correct but "fears about inflation"... doesn't seem to be idiomatic.Please explain why this is correct??

Can't really tell you if it is unidiomatic or not. It is an OG question so I assume it is fine.
You can arrive at the right answer by POE , see below:

BANON wrote:
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,
a noun is required here to be parallel with a weakening, a really, so it must be a lowering!
--> Wrong

(B) a lowering of interest rates and of fears about inflation,
Correct answer! a lowering of X and Y, a rally in V and W, and a weakening in Z
(C) a lowering of interest rates, along with fears about inflation,
Wrong --> not parallel ... a X, along with Y, a Z, and T
(D) interest rates being lowered, along with fears about inflation,
Same as A
(E) interest rates and fears about inflation being lowered, with
Same as A
Manager
Joined: 28 Jul 2011
Posts: 153
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

27 Mar 2012, 05:56
2
Vote for B

Reason:

"lowering" should be gerund [a lowering] - parallel to other options - so we narrow down to ans: B and C

Now in B the preposition "of interest rate and of fear" is parallel to non underline options
for C - ",along" introduces a subordinate clause and so is not parallel structure.
Manager
Status: SLOGGING : My son says,This time Papa u will have to make it : Innocence is BLISS
Joined: 16 Jan 2012
Posts: 128
Location: India
WE: Sales (Energy and Utilities)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

29 Oct 2012, 11:34
1
sachin, along with som went to the movies

a lowering of IR, along with fears about inflation will crush the stock market

in the above 2 egs, its pretty clear wrt the intended meaning

whereas,

X will lead to a lowering of IR, along with fears about inflation........ IMPLIES

X will lead to A along with B

where A : lowering of IR

though somewhat while we speak we tend not to pay heed to such subtelitoes but in gmatland the intended meaning gets a bit hazy in such constructions, leaving one , not that proficient in english, guessing n baffled.
Manager
Joined: 23 May 2013
Posts: 92
Re: One view of the economy contends that a large drop in oil prices shoul  [#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
e-GMAT Representative
Joined: 02 Nov 2011
Posts: 2941
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

20 Dec 2013, 17:43
2
1
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: 15 Mar 2012
Posts: 38
Re: One view of the economy contends that a large drop in oil prices shoul  [#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: 03 Apr 2014
Posts: 8
Location: India
Concentration: Marketing, Finance
GMAT 1: 710 Q50 V35
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

21 Jun 2014, 20:07
Why is A wrong in this case? after reading all the explanations, still my mind is not letting go A as an option. Somebody please explain.
Director
Status: Everyone is a leader. Just stop listening to others.
Joined: 22 Mar 2013
Posts: 693
Location: India
GPA: 3.51
WE: Information Technology (Computer Software)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

22 Jun 2014, 00:10
1
rishi081992 wrote:
Why is A wrong in this case? after reading all the explanations, still my mind is not letting go A as an option. Somebody please explain.

Refer MGMAT SC, Chapter 11, simple gerund cant be parallel with action noun or complex gerund noun.

Lowering = simple gerund.
A rally = noun
a weakening = complex gerund.

Further if you look at the structure of this sentence we need something which can fit in format like "a noun/gerund of/in ..." only B gives best parallelism.

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
Current Student
Joined: 19 Mar 2012
Posts: 4312
Location: India
GMAT 1: 760 Q50 V42
GPA: 3.8
WE: Marketing (Non-Profit and Government)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

01 May 2015, 02:20
At issue is the need for logical and formal parallelism in a coordinate series. B, the best choice, clearly and
correctly uses parallel noun phrases to list three effects of a drop in oil prices: a lowering of..., a rally in ..., and
a weakening of.... In place of the correct lower before/ears, choice A uses an incorrect participial adjective,
lowering, that could cause confusion by seeming at first to function as a verb. A also violates parallelism. In C
and D, the use of along with confuses meaning by making fears about inflation an independent effect, not an
object of lowering. D and E violate parallelism by substituting an awkward gerund clause for the first noun
phrase.
_________________
Intern
Joined: 30 Oct 2016
Posts: 11
Re: One view of the economy contends that a large drop in oil prices shoul  [#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?
Retired Moderator
Joined: 14 Dec 2013
Posts: 2838
Location: Germany
Schools: German MBA
GMAT 1: 780 Q50 V47
WE: Corporate Finance (Pharmaceuticals and Biotech)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

19 Nov 2016, 15:33
1
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
Senior Manager
Joined: 21 Jun 2017
Posts: 399
Location: India
Concentration: Finance, Economics
Schools: IIM
GMAT 1: 620 Q47 V30
GPA: 3
WE: Corporate Finance (Commercial Banking)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

07 Dec 2019, 10:24
hOW WE READ PARALLEL elements in sentence,

should eventually
lead to a lowering of interest rates,

1. A lowering of fears seems awkward and unidiomatic ?!
2. My reading of parlllel structures is fine ?!

Regards
VP
Status: Learning
Joined: 20 Dec 2015
Posts: 1069
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

09 Dec 2019, 03:13
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 can any one help me in this question.

Can second of in OA B be removed?

Will the deletion of second of in answer B lead to change in meaning?
SVP
Joined: 27 Mar 2010
Posts: 1660
Location: India
Schools: ISB
GPA: 3.31
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

09 Dec 2019, 03:32
arvind910619 wrote:
Will the deletion of second of in answer B lead to change in meaning?

Hi Arvind, indeed, deletion of second of in answer B wlll lead to change in meaning.

B says:

One view of the economy contends that a large drop in oil prices should eventually lead to a lowering of interest rates and of fears about inflation,....

Notice that the Right hand side of parallelism indicator (and in this case) is of. So, it will match with the corresponding preposition (of) on the Left hand side. So, the parallel structure is:

One view of the economy contends that a large drop in oil prices should eventually lead to a lowering
i) of interest rates and

So, basically there will be lowering of fears about inflation.

If we remove the second of, then option B would be:

One view of the economy contends that a large drop in oil prices should eventually lead to a lowering of interest rates and fears about inflation,....

Now we have a bit of a problem, because the above sentence can be interpreted as:

One view of the economy contends that a large drop in oil prices should eventually lead to
i) a lowering of interest rates and

So, basically it will lead to fears about inflation! This is exactly the opposite of the intended meaning.
_________________
Thanks,
Ashish
GMAT-99th Percentile, MBA - ISB Hyderabad
EducationAisle, Bangalore

Sentence Correction Nirvana available on Amazon.in and Flipkart

VP
Status: Learning
Joined: 20 Dec 2015
Posts: 1069
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)
Re: One view of the economy contends that a large drop in oil prices shoul  [#permalink]

### Show Tags

09 Dec 2019, 05:02
EducationAisle wrote:
arvind910619 wrote:
Will the deletion of second of in answer B lead to change in meaning?

Hi Arvind, indeed, deletion of second of in answer B wlll lead to change in meaning.

B says:

One view of the economy contends that a large drop in oil prices should eventually lead to a lowering of interest rates and of fears about inflation,....

Notice that the Right hand side of parallelism indicator (and in this case) is of. So, it will match with the corresponding preposition (of) on the Left hand side. So, the parallel structure is:

One view of the economy contends that a large drop in oil prices should eventually lead to a lowering
i) of interest rates and

So, basically there will be lowering of fears about inflation.

If we remove the second of, then option B would be:

One view of the economy contends that a large drop in oil prices should eventually lead to a lowering of interest rates and fears about inflation,....

Now we have a bit of a problem, because the above sentence can be interpreted as:

One view of the economy contends that a large drop in oil prices should eventually lead to
i) a lowering of interest rates and

So, basically it will lead to fears about inflation! This is exactly the opposite of the intended meaning.

Thanks Ashish for your valuable reply now i can see why B is indeed the right answer.
Re: One view of the economy contends that a large drop in oil prices shoul   [#permalink] 09 Dec 2019, 05:02

Go to page    1   2    Next  [ 21 posts ]

Display posts from previous: Sort by