Official Solution:
If the year-end net profit had been below 5%, the board of directors would have recommended that all further investments must be kept on hold.
A. had been below 5%, the board of directors would have recommended that all further investments must
B. was below 5%, the board of directors would have recommended that all further investments should
C. was below 5%, the board of directors would recommend that all further investments
D. were below 5%, the board of directors would recommend that all further investments
E. would have been below 5%, the board of directors would have recommended that all further investments would
A. Command subjunctive is required with the verb “recommend”. Therefore, the correct form is “be kept..”, not “must be kept…”.
B. The hypothetical subjunctive of the verb “to be” is “were”, not “was”, even though the subject is singular. Therefore the correct usage is “If the year-end net profit were…”. Moreover in an “if… then... “ construction, if the “if” part consists of a hypothetical subjunctive, then the “then” part must have the conditional tense “would”, not the conditional perfect “would have”.
Command subjunctive is required with the verb “recommend”. Therefore, the correct form is “be kept…”, not “should be kept…”.
C. The hypothetical subjunctive of the verb “to be” is “were”, not “was”, even though the subject is singular. Therefore the correct usage is “If the year-end net profit were…”.
D. Correct. In the “if…then…” construction, the combination “if (hypothetical subjunctive: were), then (conditional: would recommend)” is correctly used.
Moreover the command subjunctive “be” is correctly used: “...recommended that ..investments be kept…”.
E. The combination “if (conditional perfect), then (conditional perfect)” is wrong. The correct combination is “if (past perfect: had been), then (conditional perfect: would have recommended)”.
Command subjunctive is required with the verb “recommend”. Therefore, the correct form is “be kept…”, not “would be kept…”.
Answer: D