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Re: Usage of "that" [#permalink]
The loss of confidence among consumers that led to a sudden reduction in consumption and investment spending, causing both dramatic drops in demand and credit, and disruption of trade, ultimately resulting

Here, we can't use that because we don't know whether the subject is confidence or consumers, right?
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Re: Usage of "that" [#permalink]
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aarushisingla wrote:
Can "That" refers to the preceding noun if the noun is in prepositional phrase ?

Yes aarushisingla, of course! For example:

Mike is the owner of the car that was recently launched.

Here, "that" refers to the noun "car", even though "car" is in the prepositional phrase "of the car".
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Re: Usage of "that" [#permalink]
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Katy101 wrote:
The loss of confidence among consumers that led to a sudden reduction in consumption and investment spending, causing both dramatic drops in demand and credit, and disruption of trade, ultimately resulting

Here, we can't use that because we don't know whether the subject is confidence or consumers, right?

Not correct. "that" is neither referring to confidence nor to consumers; "that" is referring to "loss of confidence", because this is what makes sense!

Also it is worthy to note that "that" cannot modify "consumers"; if the intent was to modify "consumers", the correct relative pronoun should have been "who".

Do remember that there is considerable flexibility in terms of what "that" can modify.

p.s. Our book EducationAisle Sentence Correction Nirvana discusses modifier issues of "that", their application and examples in significant detail. If you or someone is interested, PM me your email-id; I can mail the corresponding section.
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Re: Usage of "that" [#permalink]
Hi, I have a doubt.
Here in the first example - We all know that the Sun rises in the east - Isn't "We all know" the dependent clause and "the Sun rises in the east" the independent clause logically? Then how is "We all know" the IC?
Could anyone please clear up this doubt?
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Re: Usage of "that" [#permalink]
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