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# When housing prices climb too quickly, the Federal Reserve

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Senior Manager
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When housing prices climb too quickly, the Federal Reserve [#permalink]

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15 Aug 2009, 02:18
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When housing prices climb too quickly, the Federal Reserve often responds by raising the key interest rate, which has the curious effect of actually lowering housing prices instead of raise them, as one might expect.

A) which has the curious effect of actually lowering housing prices instead of raise them

B) an action that has the curious effect of actually lowering housing prices rather than raising them

C) which has the curious effect of actually lowering housing prices instead of raising them

D) which rather than raising housing prices actually has the curious effect of lowering them

E) an action that has the curious effect of actually lowering housing prices instead of raise them
[Reveal] Spoiler: OA

Last edited by Vyshak on 05 May 2016, 22:32, edited 1 time in total.
Updated OA
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Senior Manager
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Re: When housing prices climb too quickly, the Federal Reserve [#permalink]

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15 Aug 2009, 04:40
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KUDOS
only option B used rather than and parallel; makes life easy
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Re: When housing prices climb too quickly, the Federal Reserve [#permalink]

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15 Aug 2009, 05:03
'which' refers to 'the key interest rate' ..so A, C and D gone ..

now in B and E ... you use 'rather than' to compare clauses ..so only B is doing that ..

IMO B.
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Re: When housing prices climb too quickly, the Federal Reserve [#permalink]

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19 Dec 2011, 01:42
B

which refer to immediate noun thats why "an action" is required...
rather than is preferred over instead of
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Re: When housing prices climb too quickly, the Federal Reserve [#permalink]

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05 Jan 2012, 07:07
Simple one. B it is. The "raising of the key interest rate", NOT "the key interest rate" itself, has the "curious effect...".
Only B and E convey the proper meaning.
B maintains parallelism and E does not.
B is the answer.
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Re: When housing prices climb too quickly, the Federal Reserve [#permalink]

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01 Jul 2016, 21:38
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: When housing prices climb too quickly, the Federal Reserve   [#permalink] 01 Jul 2016, 21:38
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# When housing prices climb too quickly, the Federal Reserve

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