When considerable overlap occurred between inflation and recession in the last half of the 1970s and early 1980s, the Fed respo

Question

3 years ago

15

When considerable overlap occurred between inflation and recession in the last half of the 1970s and early 1980s, the Fed respo

nded by
A. keeping interest rates high.
B. pursuing a rapid expansion of the monetary base.
C. pushing interest rates down to near zero.
D. adopting a policy of inflation targeting.

Business

1 answer:

andre [41] · Answer 1 · 2022-08-19T09:42:11+03:00

Answer:

A. keeping interest rates high.

Explanation:

In the late 1970s. The rate of inflation was very high, exceeding 10% in 1979 and 1980, so the Federal Reserve used tight monetary policy to raise interest rates, with the federal funds rate rising from 5.5% in 1977 to 16.4% in 1981.

When considerable overlap occurred between inflation and recession in the last half of the 1970s and early​ 1980s, the Fed respo

When considerable overlap occurred between inflation and recession in the last half of the 1970s and early 1980s, the Fed respo