The correct answer is A) raised interest rates in an attempt to slow down inflation.
<em>Under President Carter, the Federal Reserve raised interest rates in an attempt to slow down inflation.
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When Jimmy Carter took the presidency of the United States the economy was improving slowly. But the Federal Reserve attempt to slow down inflation in the late 70s made the economy of the country to slow more. The U.S, recession of that time had been caused by the oil embargo, so President Carter’s idea to improve the economy of the nation was to reduce the dependence of foreign energy and petroleum.
