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# When housing prices climb too quickly, the Federal Reserve

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Senior Manager
Joined: 17 Mar 2009
Posts: 301
When housing prices climb too quickly, the Federal Reserve [#permalink]

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15 Aug 2009, 02:18
1
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Question Stats:

75% (01:18) correct 25% (00:24) wrong based on 196 sessions

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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
Senior Manager
Joined: 25 Jul 2009
Posts: 325
Re: When housing prices climb too quickly, the Federal Reserve [#permalink]

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15 Aug 2009, 04:40
1
KUDOS
only option B used rather than and parallel; makes life easy
Director
Joined: 01 Aug 2008
Posts: 732
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.
Manager
Joined: 17 Jul 2011
Posts: 84
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
Senior Manager
Joined: 12 Oct 2011
Posts: 263
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.
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GMAT Club Legend
Joined: 01 Oct 2013
Posts: 10164
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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