The governement predicts that, for counsumers

[RonPurewal]

Dear tutors,

I noticed that option E, "for consumers and businesses making a large ...", that's a difference.

There's a difference:
"...that make long-distance calls" means generally.
"...making long-distance calls" means [i]in the actual timeframe of the sentence.

In this context, both are reasonable, so you can't really use this as a criterion for elimination.

I don't know whether the present participle has any potential meaning that consumers and businesses make calls now?

Assuming you're referring to the __ing (I don't remember terminology)...
It refers to the timeframe of the surrounding context. Not necessarily "right now", unless "right now" is the context of the sentence.
E.g.,
Students writing papers 100 years ago used quill pens. --> "writing papers" refers to an action 100 years ago.
Students writing papers in 2030 will use voice dictation. --> "writing papers" refers to an action in the year 2030.

(If you're actually talking about something else, please clarify, without the terminology. Thanks.)

[NicoleT643]

Hi Ron, I am always confused by modifiers. Here is my question

in choice A and E, for consumers and businesses that make a large number of long-distance calls is an adverbial modifier, and should modify the subject and verb.
Choice A, it modifies "the Federal communication's recent telephone rate cuts will greatly reduce costs"
and
Choice E, it modifies "the government predicts"
Obviously choice A is logical, therefore the usage of this modifier in choice A is correct.

Am I correct?

Thanks.

[RonPurewal]

yes.