Question:

Read the following sentence and choose the best alternative which should replace the italicized part of the sentence.
Economic theory fails to explain the extent _________ savings from personal income has shifted to short-term bonds, money-market funds, and other near-term investments by the instability in the futures market.

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When describing actions on a plural noun like "savings," ensure to use the correct verb tense ("have been shifted") and structure.
Updated On: Aug 26, 2025
  • to which savings from personal income has shifted
  • of savings from personal income that has been shifted
  • of savings from personal income shifting
  • to which savings from personal income have shifted
  • to which savings from personal income have been shifted
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The Correct Option is

Solution and Explanation

Step 1: Analyze the sentence structure.
- The sentence talks about the shifting of savings and needs a correct preposition and verb tense to describe the action.
- "To which savings from personal income have been shifted" is grammatically correct, using the correct passive voice and verb form.
Step 2: Eliminate the incorrect options.
- (A) is incomplete as it lacks the correct verb tense.
- (B) uses "has been shifted" incorrectly, as "have been shifted" is needed to match the plural subject "savings."
- (C) introduces an incorrect gerund form "shifting."
- (D) lacks the correct passive construction.
Therefore: The correct answer is \boxed{(E)}.
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