Rising interest rates

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 301
Joined: Tue Apr 22, 2008 6:07 am
Thanked: 2 times

Rising interest rates

by beater » Mon Mar 09, 2009 9:16 pm
Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

A. rising interest rates makes it more expensive to buy them on credit
B. rising interest rates make buying on credit more expensive
C. a rise in interest rates make it more expensive to buy on credit
D. a rise in interest rates make buying on credit more expensive
E. a rise in interest rates makes it more expensive for them to be bought on credit

What do you think are the possible referents for IT? Could someone please explain proper use of BECAUSE. I understand that Because is best used to explain cause/effect relationships but are there any rules with regards to the general usage of Because.

Thanks!

OA - B
Last edited by beater on Tue Mar 10, 2009 7:03 pm, edited 1 time in total.
Source: — Sentence Correction |

Senior | Next Rank: 100 Posts
Posts: 84
Joined: Thu Aug 28, 2008 5:04 am
Thanked: 3 times

Re: Rising interest rates

by dgr8onerip » Mon Mar 09, 2009 9:54 pm
beater wrote:Noting that the Federal Reserve had raised a key short-term interest rate against last month, analysts said that they expected orders for durable goods to decline soon because rising interest rates makes it more expensive to buy them on credit.

A. rising interest rates makes it more expensive to buy them on credit
B. rising interest rates make buying on credit more expensive
C. a rise in interest rates make it more expensive to buy on credit
D. a rise in interest rates make buying on credit more expensive
E. a rise in interest rates makes it more expensive for them to be bought on credit

What do you think are the possible referents for IT? Could someone please explain proper use of BECAUSE. I understand that Because is best used to explain cause/effect relationships but are there any rules with regards to the general usage of Because.

Thanks!
IMO-C
because only in C, the word it is comparatively not ambiguous
it refers to the phrase(buying on credit) that follows in option C
target score- anything above 700
preferably above 750
gmat prep 1- 710
powerprep 1- 730
barrons test 1- 760
kaplan test 1- 620 (lol)
kaplan test 2- 680
score 800 1-720
score 800 2- 730
score 800 3-750
score 800 4-720
score 800 5- 710
gmat prep 1 (retake)- 710
gmat prep 2- 730
gmat prep 2 (retake)- 720
actual gmat - 770 :)

Legendary Member
Posts: 594
Joined: Thu Aug 14, 2008 11:51 pm
Thanked: 12 times

by nervesofsteel » Tue Mar 10, 2009 12:38 am
B for me...

rising interest rates is plural.. thus make..

it should not be used...as it has not referent ...

Senior | Next Rank: 100 Posts
Posts: 77
Joined: Sat Dec 27, 2008 10:12 pm
Thanked: 3 times

by shilpi84 » Tue Mar 10, 2009 1:35 am
Seems to be B.

A->
Them is ambiguous.
C->
A rise is singular so the verb should be makes.Same applies to D.
E->
Wordy

Master | Next Rank: 500 Posts
Posts: 107
Joined: Wed Mar 04, 2009 4:39 am
Location: Vancouver
Thanked: 9 times
GMAT Score:750

by pakaskwa » Tue Mar 10, 2009 2:31 am
IMO B.

A. rising interest rates makes it more expensive to buy them on credit
them is ambiguous.

B. rising interest rates make buying on credit more expensive
Correct

C. a rise in interest rates make it more expensive to buy on credit
a rise ... makes it more expensive, NOT make it

D. a rise in interest rates make buying on credit more expensive
a rise ... makes it more expensive, NOT make it

E. a rise in interest rates makes it more expensive for them to be bought on credit
them is ambiguous

I don't see any problem using "because" in the sentence. It's clearly causal relationship. The reason that analysts said so is that they think rising interest rates will make things more expensive.

• Page 1 of 1