<p>The first signs in six months of a pickup in consumer spending are emerging, which reduces the chances that the Federal Reserve will lower interest rates when it meets next month.
A. are emerging
B. which reduces
C. that
D.it meets</p>
<p>the answer is B, and it says it should be reducing</p>
<p>why?</p>
<p>The subject of the sentence is "signs." "Which reduces" does not make sense, because the subject is plural but the verb is not. "Reducing" fits the subject.</p>
<p>yeah----------</p>
<p>But what if "which reduces" refer to the clause before, I mean "The first signs in six months of a pickup in consumer spending are emerging"</p>
<p>"reduces" is referring to the signs which is plural thus "reduces" would have to changed to "reduce"</p>
<p>reduces is referring to signs. Since "signs" is a plural noun, reduces should be changed to reduce to make it a plural verb. it's subj/verb agreement. it might be hard to see b/c the word "signs" is separated from "reduces" by a long prepositional phrase: "... in six months of a pickup on consumer spending are emerging..."</p>