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SAT Grammar Question

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Please explain the best answer in detail
The easiest way of finding the answer to a question like this is to "plug in" each multiple choice answer. Then read the statement out loud and see if it sounds right to you. By doing this, does any of these answers make better sense than the others? A. Because people have lost faith B. Because of the loss of faith C. By people which have lost faith D. losing faith E. Loss of faith

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Other answers:

To be honest. A sounds entirely correct.
It provides you with an explanation of who has lost faith in the dollar.
But I was wrong.
Sometimes, they will sound correct like that. But, there is always a better answer than them. SAT tests loves to throw questions at you that are tricks.
u have to notice the pattern of the sentece .....has been influenced by continued inflation and ........(it has to have the same type of wording such as losing faith goes with inflation ) choice D is the answer
Actually, D sounds legit, but if I were to go along that line of thinking, then wouldn't it be E since continued inflation is a noun and E makes it a noun with loss of faith.
@HavinFaith , By the way, I like your name and the the question's coincidence
The answer is actually E.
This type of question tests parallelism in writing. In this sentence, we have a noun phrase, 'continued inflation.' It should be equated with another noun phrase to make the sentence flow and retain the parallel structure. Let's cut up the sentence : The price of gold has been influenced by continued inflation and _____________ in the dollar. This sentence is in the passive, so it goes object-verb-subject. In this case, we have a plural subject of two things, as showed by 'and'. The rule with parallelism in this case is to balance the sides of the 'and'; imagine it like a see-saw that you want to make even. Since 'continued inflation' is a noun phrase, what would best fit? - A,B, and C aren't noun phrases and are super wordy and awkward. So let's delete those. - D is a verb phrase. 'Losing faith' is an action. - E is a noun phrase. 'Loss of faith' is correct and balances 'continued inflation'. A tricky question. Watch out for parallelism and remember the rules of keeping even. Does that sort of help? :)
Thank you, for your compliment dta255.
Thank you very much to all of you.

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