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# Since February, the Federal Reserve has raised its

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VP
Joined: 30 Sep 2004
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Location: Germany
Since February, the Federal Reserve has raised its [#permalink]

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24 Dec 2005, 10:40
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0% (00:00) correct 0% (00:00) wrong based on 4 sessions

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Since February, the Federal Reserve has raised its short-term interest rate target five times, and because of the economyâ€™s continued strength, analysts have been predicting for weeks that the target will be raised again in November.

A. because of the economyâ€™s continued strength, analysts have been predicting for weeks that the target will
B. with the economyâ€™s strength continuing, analysts predicted for weeks that the target
C. because the economy continues strong, analysts predicted for weeks that the target would
D. due to the economyâ€™s continued strength, analysts have been predicting for weeks that the target
E. due to the fact of the economyâ€™s continued strength, analysts predicted for weeks that the target will
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If your mind can conceive it and your heart can believe it, have faith that you can achieve it.

Kudos [?]: 411 [0], given: 0

VP
Joined: 30 Sep 2004
Posts: 1480

Kudos [?]: 411 [0], given: 0

Location: Germany

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24 Dec 2005, 10:43
OA is A ! i have a question why is "target be raised" in D) wrong ? i thought "predict that" is a suggestion and so its ok to use subjunctive mood, respectively the base form of the verb "be" !

can some pls help...thx
_________________

If your mind can conceive it and your heart can believe it, have faith that you can achieve it.

Kudos [?]: 411 [0], given: 0

Director
Joined: 17 Dec 2005
Posts: 544

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Location: Germany

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24 Dec 2005, 13:08
christoph wrote:
Since February, the Federal Reserve has raised its short-term interest rate target five times, and because of the economyâ€™s continued strength, analysts have been predicting for weeks that the target will be raised again in November.

A. because of the economyâ€™s continued strength, analysts have been predicting for weeks that the target will
B. with the economyâ€™s strength continuing, analysts predicted for weeks that the target
C. because the economy continues strong, analysts predicted for weeks that the target would
D. due to the economyâ€™s continued strength, analysts have been predicting for weeks that the target
E. due to the fact of the economyâ€™s continued strength, analysts predicted for weeks that the target will

I saw on several SC exercises, that "predict that" needs not to be followed by a subjunctive mood, if there is a fact supporting the prediction. "because of the economyâ€™s continued strength" is the fact.

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CEO
Joined: 20 Nov 2005
Posts: 2892

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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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24 Dec 2005, 17:18
christoph wrote:
OA is A ! i have a question why is "target be raised" in D) wrong ? i thought "predict that" is a suggestion and so its ok to use subjunctive mood, respectively the base form of the verb "be" !

can some pls help...thx

I think because of the subjunctive mood we are using "target will be raised". "target be raised" means we are saying targets should be raised then there is nothing to be predicted. Its kind of a demand rather than prediction.
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SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

Kudos [?]: 323 [0], given: 0

24 Dec 2005, 17:18
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