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
OAB
Hi Experts ,
Please explain.
Many thanks in advance.
SJ
Federal Reserve
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GMAT/MBA Expert
- ceilidh.erickson
- GMAT Instructor
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Whenever you see an underlined portion beginning with WHICH, the question is almost certainly testing MODIFIERS.
WHICH is a relative pronoun, and it should modify the noun (or noun phrase) directly before it. In this case, the noun phrase directly before WHICH is "the key interest rate." This would imply that the interest rate itself is lowering housing prices - this is nonsensical. We need to change the modifier structure to suggest that the action of RAISING the key interest rates is what is lowering the housing prices.
A) which has the curious effect of actually lowering housing prices instead of raise them
The "which" is a misplaced modifier. Incorrect.
B) an action that has the curious effect of actually lowering housing prices rather than raising them
This answer choice switches the modifier structure. Here, "an action" can now refer to the entire idea of the Federal Reserve raising the interest rates. Correct.
C) which has the curious effect of actually lowering housing prices instead of raising them
The "which" is a misplaced modifier. Incorrect.
D) which rather than raising housing prices actually has the curious effect of lowering them
The "which" is a misplaced modifier. Incorrect.
E) an action that has the curious effect of actually lowering housing prices instead of raise them
This answer choice fixes the "Which" issue, but "lowering instead of raise" is not parallel.
The correct answer is B.
WHICH is a relative pronoun, and it should modify the noun (or noun phrase) directly before it. In this case, the noun phrase directly before WHICH is "the key interest rate." This would imply that the interest rate itself is lowering housing prices - this is nonsensical. We need to change the modifier structure to suggest that the action of RAISING the key interest rates is what is lowering the housing prices.
A) which has the curious effect of actually lowering housing prices instead of raise them
The "which" is a misplaced modifier. Incorrect.
B) an action that has the curious effect of actually lowering housing prices rather than raising them
This answer choice switches the modifier structure. Here, "an action" can now refer to the entire idea of the Federal Reserve raising the interest rates. Correct.
C) which has the curious effect of actually lowering housing prices instead of raising them
The "which" is a misplaced modifier. Incorrect.
D) which rather than raising housing prices actually has the curious effect of lowering them
The "which" is a misplaced modifier. Incorrect.
E) an action that has the curious effect of actually lowering housing prices instead of raise them
This answer choice fixes the "Which" issue, but "lowering instead of raise" is not parallel.
The correct answer is B.
Ceilidh Erickson
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
GMAT/MBA Expert
- ceilidh.erickson
- GMAT Instructor
- Posts: 2095
- Joined: Tue Dec 04, 2012 3:22 pm
- Thanked: 1443 times
- Followed by:247 members
For more on the use of "WHICH" as a noun modifier, see here:
https://www.beatthegmat.com/amounting-an ... tml#554774
https://www.beatthegmat.com/emily-dickin ... tml#563839
https://www.beatthegmat.com/noun-phrase- ... tml#570781
https://www.beatthegmat.com/question-in- ... tml#767098
https://www.beatthegmat.com/amounting-an ... tml#554774
https://www.beatthegmat.com/emily-dickin ... tml#563839
https://www.beatthegmat.com/noun-phrase- ... tml#570781
https://www.beatthegmat.com/question-in- ... tml#767098
Ceilidh Erickson
EdM in Mind, Brain, and Education
Harvard Graduate School of Education
EdM in Mind, Brain, and Education
Harvard Graduate School of Education