The central bank governor recommended that interest rates ______ kept steady until inflation stabilized.

Answer and explanation

Correct answer: A. be

  1. Step 1: The verb 'recommend' governing a that-clause requires the mandative subjunctive mood. The passive mandative subjunctive uses the uninflected base form 'be', regardless of grammatical number. Answer: be. Why not the others: "are being" uses present progressive indicative instead of the required mandative subjunctive base form; "would be" uses conditional modal 'would', which violates standard mandative subjunctive rules; "were being" uses past continuous indicative, which is ungrammatical in mandative complement clauses.

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