Directions: In the questions given below, a blank has been provided for each and needs to be filled with the appropriate word. Choose the best option among the given ones. Higher input costs have squeezed profits for companies and further _________ these worries, the yield on 10-year U.S. Treasuries hit 3% for the first time in more than four years, indicating that companies would require more cash to service company

Step-by-step solution

The tone of the statement is negative and it conveys that higher prices lead to less profits and then goes on to talk about another negative issue. Thus, clearly, the second would add to the stress and not reduce it. Hence, we can eliminate ameliorating and relieving, both of which mean to make a situation better. Aggravate is correct in terms of meaning ( to worsen ) but incorrect grammatically as aggravating should have been used. Compounding means to make (something bad) worse and is a perfect fit. Hence, option