In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the:

Question

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During 1979 to 1982, the Federal Reserve, under Chairman Paul Volcker, implemented high interest rates to combat inflation. Setting a target equal to the high market rates would have been politically challenging due to the economic pain caused by such high rates, including recession and high unemployment.

In the Period of 1979 to 1982, If the Fed