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The braking effect of the engine is greatest when the engine is _____ the governed rpm and the transmission is in the ______ gears.

A near; lower
Explaination
The engine braking effect is strongest when the transmission is in a low gear and and the engine is operating near the governed rpm's. Note: Engine braking is NOT the same thing as using a retarder or Jake Brake. Engine braking simply relies on low gears and the partial vacuum in the engine at idle to prevent your vehicle from going too fast.
B below; higher
C above; lower