According to some analysts, the gains in the stock
market reflect growing confidence that the economy
will avoid the recession that many had feared earlier
in the year and instead come in for a "soft landing,"
followed by a gradual increase in business activity.

• (A) that the economy will avoid the recession
  that many had feared earlier in the year and
  instead come
  
  (B) in the economy to avoid the recession, what
  many feared earlier in the year, rather to come
  
  (C) in the economy's ability to avoid the recession,
  something earlier in the year many had feared,
  and instead to come
  
  (D) in the economy to avoid the recession many
  were fearing earlier in the year, and rather
  to come
  
  (E) that the economy will avoid the recession that
  was feared earlier this year by many, with it
  instead coming

Correct Answer: A

B and D: gains in the stock market reflect...to avoid the recession
Conveyed meaning:
The reason that GAINS REFLECT is TO AVOID the recession.
Not the intended meaning.
Eliminate B and D.

C: the recession, something earlier in the year
Conveyed meaning:
The recession is SOMETHING that occurred EARLIER IN THE YEAR.
The intended meaning is just the opposite: that the economy will AVOID the recession.
Eliminate C.

E: with it instead
Here, it lacks a clear referent.
Eliminate E.

The correct answer is A.

src_saurav wrote:
I choose B because instead is not preferable on GMAT and insted is used with noun.
what is your answer?