Tricky SC - please help

[sd]

An economic recession can result from a lowering of employment rates triggered by a drop in investment, which causes people to cut consumer spending and starts a cycle of layoffs leading back to even lower employment rates.

(A)a lowering of employment rates triggered by a drop in investment, which causes people to cut consumer spending and start a cycle of layoffs leading back to even lower employment rates.

(B)a lowering of employment rates triggered by dropping investment, which causes people to cut consumer spending and starts a cycle of layoffs leading back to even lower employment rates.

(C)falling employment rates triggered by a drop in investment, which cause cutbacks in consumer spending, starting a cycle of layoffs that lead to even lower employment rates.

(D)falling employment rates that are triggered by a drop in investment, causing people to cut consumer spending and starting a cycle of layoffs that lead back to even lower employment rates.

(E)falling employment rates that are triggered by a drop in investment, causing cutbacks in consumer spending and starting a cycle of layoffs leading to even lower employment rates.

[rajatmehta]

Answer E

(E)falling employment rates that are triggered by a drop in investment, causing cutbacks in consumer spending and starting a cycle of layoffs leading to even lower employment rates.

Choice C, D and E - correctly use "falling employment rates" instead of "lowering employment rates".

C makes incorrect use of "which" to indicate investment is causing cutbacks.

D is Incorrect, "causing..." and "starting..." clauses are not parallel.
The first clause introduces noun "people" while second clause doesn't has one.
Also, people and consumer means the same in this context. (People to cut consumer spending). E rectifies this problem.

E is Correct, parallelism between causing and starting.

[selva.e]

This really a good question,

this is clearly a 3:2 split,

A, B has couple of issues,
1)
"a lowering of employment rates " is wordy compared to falling employment rates.
Also the former introduces a bit of passive voice.

2)
"people to cut consumer spending" - people and consumer are same. So duplicate!

Coming back to C,D, and E,

D - has the same issue as 2)

C and E- tough competition though,

E - deceives with perfect parellism falling,causing, and starting.
But if you see the meaning, this parellism doesn't makes sense at all. Because,

An economic recession can result from falling employment rates triggered by a drop in investment

but not by causing ..... and starting....


C clearly explains the "falling employment rates " with non restrictive modifier which and followed by comma.,

[sd]

OA is C. Thanks so much for your explanation, Selva

[esledge]

Great discussion, thanks everyone.

[sd]

(C)falling employment rates triggered by a drop in investment, which cause cutbacks in consumer spending, starting a cycle of layoffs that lead to even lower employment rates.

I have a question as go through this once again....I agree that C is correct. But this is the first time that I am seeing which NOT refer to a noun immeditely preceeding it (investment). I understand that falling employment rates is the actual noun that is modified by 'triggered by a drop in investment'. - past participle modifier. But if this appeared on actual GMAT, in a hurry, I would have thought that which refers to investment.

So is it NOT a hard and fast rule that which MUST refer to the noun immediately preceeding it. Instructors, please clarify.

[Ben Ku]

The rule that a noun modifier must touch the noun that it modifies is correct, except when it touches an essential modifier.

In option (C), "a drop in investment, which cause cutbacks " is fine, since the "in investment" is essential to describe what kind of drop.

You can refer to this post:
[url]http://www.manhattangmat.com/forums/the-which-rule-t7033.html
[/url]
where Emily and Ron provides clear examples of when essential modifiers trump noun modifiers. Hope that helps.

[Ben Ku]

ratheeshmallaya, thanks for the catch. I didn't read the thread as thoroughly as I should have. I think the "triggered by a drop in investment" does qualify as an essential modifier because the cuts in people's spending is not caused by any lowering in employment rate; it's specifically due to the lowering in employment rate that was triggered by a drop in investment. I hope that works.

There was not a source cited for this question, so I don't know who the author was. I admit there does seem to be some ambiguity about how the noun modifier is placed.