Most economists credit the decline in short-term nominal rates over the 1980s and early 1990s to
A)lower tax rates.
B)decreased spending by the federal government.
C)rising prices on the New York Stock Exchange.
D)the Federal Reserve's fight against inflation.

Question

Quizplus · Accepted Answer

The decline in short-term nominal rates over the 1980s and early 1990s was primarily due to the Federal Reserve's fight against inflation through tighter monetary policy. The Fed raised interest rates to combat inflation, which had the effect of pushing down short-term nominal rates.

Most Economists Credit the Decline in Short-Term Nominal Rates Over