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.
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)}.