In the late 1970s the rate of inflation was very high, exceeding 10% in 1979 and 1980. As a result, the Federal Reserve used Tight monetary policy to raise the federal funds rate.
<h3>What is the rate of inflation?</h3>
Rate of inflation is the increase in price in a given period of time. Inflation is usually described as a wide measure of price increases or increases in the cost of living in a nation.
Example of Inflation goes up when prices increase, reducing your dollar's buying power.
Thus, it is Tight monetary policy.
For more information about Rate of inflation, click here:
brainly.com/question/27058067
#SPJ1
Real flow is exchange of goods & services between firms & households. & Money flow is exchange between 2 sectors
Explanation:
The CPI stands for Consumer Price index
. It refers to the change in the price level with respect to the goods and services available in the market.
The CPI is calculated below
= Given the cost of market goods and services using the price of given year by the Given cost of market goods and services using the price of a base year and then it would be multiplied by 100
While the GDP Deflator deals with the price of all goods and services that are produced in domestic.
Answer:
The answers B More profits
Explanation:
Trust me i just made a 100 in the test
