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Profits - OG 86

Expert replies
by tmaliackal » Sun Feb 19, 2012 5:07 am
86. The results of the company's cost-cutting measures
are evident in its profits, which increased 5 percent
during the first 3 months of this year after it fell over
the last two years.
(A) which increased 5 percent during the first
3 months of this year after it fell
(B) which had increased 5 percent during the first
3 months of this year after it had fallen
(C) which have increased 5 percent during the first
3 months of this year after falling
(D) with a 5 percent increase during the first
3 months of this year after falling
(E) with a 5 percent increase during the first
3 months of this year after having fallen

The answer is C but how. The two events happened in the past right? So shouldn't the answer be the profits have fallen over 3 years and increased by 5 percent in the first 3 months.

How can it be profits falling and profits have increased when profits have increased is the latter event?

Can somebody explain why C is the correct choice.[/i]
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Source: — Sentence Correction |

by GMATGuruNY » Sun Feb 19, 2012 6:58 pm
tmaliackal wrote:86. The results of the company's cost-cutting measures
are evident in its profits, which increased 5 percent
during the first 3 months of this year after it fell over
the last two years.
(A) which increased 5 percent during the first
3 months of this year after it fell
(B) which had increased 5 percent during the first
3 months of this year after it had fallen
(C) which have increased 5 percent during the first
3 months of this year after falling
(D) with a 5 percent increase during the first
3 months of this year after falling
(E) with a 5 percent increase during the first
3 months of this year after having fallen

Can somebody explain why C is the correct choice.[/i]
I posted an explanation here:

https://www.beatthegmat.com/confused-by- ... tml#400242

One purpose of the present perfect (HAVE + VERBed) is to express an action that started in the PAST and might still be happening in the PRESENT. In the OA, profits HAVE INCREASED 5 percent during the first 3 months of this year implies that profits might STILL BE INCREASING.

Please note that FALLING here is a gerund: a verb functioning as a NOUN. After falling is an adverb explaining how profits have increased. HOW have profits increased? They have increased AFTER FALLING OVER THE LAST TWO YEARS.
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