Sentence Correction

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

Hi ,

Please advise why not option C or why not which?

Thanks ,

Shreyans

j_shreyans wrote: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

Hi ,

Please advise why not option C or why not which?

Thanks ,

Shreyans

On the GMAT, which + SINGULAR VERB must refer to the nearest preceding singular noun.
In A, C and D, which seems to refer to rate -- the nearest preceding singular noun -- implying that the RATE the effect of lowering housing prices.
Not the intended meaning.
The intended meaning is that RAISING the rate has the effect of lowering housing prices.
Eliminate A, C and D.

E: actually lowering housing prices instead of raise them
Here, lowering and raise are not parallel.
Eliminate E.

The correct answer is B.

OA: When housing prices climb too quickly, the Federal Reserve often responds by raising the key interest rate, an action that has the curious effect of actually lowering housing prices rather than raising them.
Here, the portion in red is a SUMMATIVE MODIFIER.
A summative modifier is composed of COMMA + ABSTRACT NOUN + OTHER WORDS.
The purpose of a summative modifier is to SUM UP or REDEFINE the preceding clause.
In the OA, the event in the main clause -- that the Federal Reserve often responds by raising the key interest rate -- is SUMMED UP as an action that has the curious effect of actually lowering housing prices rather than raising them.

Hi Mitch,
If the flaw pointed out by you is rectified by you then which would b correct between B and E.Plz clarify the correct use of "Instead of" and "Rather than".
Thanks
Sandip.

I mean if we can use these two interchangeably.