santorasantu
Thanks Arun, If I understand correctly, Rising Inventories(Subject), if not accompanied by corresponding increases in sales (prep phrase), can lead to production cutbacks that would hamper economic growth.
Inside the prep phrase, increases is used as a noun and both increase and increases are correct.
You're right that
corresponding increases is inside a prepositional phrase. That preposition is
by. Think of that part of the sentence as saying "if not accompanied by X".
by corresponding increases in sales...Both
corresponding and
in sales point to
increases. So within the noun phrase
corresponding increases in sales, we have another prepositional phrase,
in sales. We can again look at it as
in X. In this case, the
X is
sales (noun).
And yes, we should be able to use either
increase or
increases. I like
increases more though.
Rising inventories, if not accompanied by a corresponding increase in sales... ← This one seems to refer to one increase in sales.
Rising inventories, if not accompanied by corresponding increases in sales... ← This one fits better with
corresponding. That is, there is an increase in sales to "match" every increase in inventory levels. That makes more sense (to me), given that this sentence appears to be discussing the impact of rising inventories on the entire economy.
This question doesn't test that though, as there is no option with
increase.