My answer is
(B). It took me 02:59. I took relatively long time because I eliminated (B) in the first pass. I end up solving this question twice.
First Pass(A) We see the possibility of a list: led to ..., caused ...
But to form a list, we expect to find the third item "and verb-ed ..."
The only item we can find, however, is "resulting..." (Present participle).
Moreover, it is strange to see ", and disruption of trade" in the middle of the sentence. This strangeness causes me to eliminate (B) in the first pass.
(B) I find the use of ", and disruption of trade” unexpected and jarring.
Ultimately, I realize that the author meant to say that
The loss of confidence
causing
dramatic drops in demand and credit
and disruption of trade
Yet we do not need a comma in "X and Y".It is true that in this particular construction, X ("dramatic drops in demand
and credit") already contains an "and". Yet adding a comma before Y is not a good solution. More below in second pass discussion.
A good GMAT sentence should not confuse readers. I eliminated (B).
(C) Not a sentence.
The subject seems to be "The loss of confidence among consumers that led to a sudden reduction in consumption and investment spending"
but there is no main verb in the rest of the sentence.
(C) is eliminated.
(D) There are two major issues.
(1) "caused" seems to be the main verb for the subject, but the comma before "caused" should be removed.
(2) How to interpret "resulted"? If it is considered a peer with "caused", a conjunction such as "and" should be added in front of it. Alternatively, it can be changed to be "resulting".
(E) Since I had eliminated (ABCD), I hoped this is the right answer.
But it basically suffered the same problems above.
Surprise! I eliminated all answers!
Now, because I did not take notes of why I eliminated any answer or how convinced I was with any elimination. I had to
> Readjust my criteria to be a bit loose / tolerant.
> Reexamine every option, thus needing additional time.
I happen to develop a strategy that, in order to give me a fresh mind set (and to improve efficiency in most cases), I will switch to examine answer choices from (E) to (A) if I get stuck in one option. So, for the second pass, I did the reverse order, a decision that increased my time to hit (B) again.
Second Pass(EDC) Eliminated for the same reasons in the first pass. Additional time expended nevertheless.
(B) With lower standard for lucid writing, I can defend this version. It is a simple sentence followed by two participle phrases.
Typically speaking, two participle phrases one after another that are not in parallel is a bit annoying. But I am not against such use.
Adding the comma before "and disruption of trade" is not recommended at all, if not flat wrong altogether. If this is not an intentional trick to make this question more challenging, the author should be advised to consider the following fixes.
(1) A nested list "causing dramatic drops in demand and credit and disruption of trade" is still better than the current version.
(2) Or "causing dramatic drops in demand and credit as well as disruption of trade"
(3) Or "causing dramatic drops in demand and credit and disrupting trade"
(4) Or restructure the sentence to avoid the awkwardness.