Interest rates have fallen since the early 1980s because the
A) federal deficit has declined.
B) federal deficit has increased.
C) inflation rate has declined.
D) inflation rate has increased.

Question

Quizplus · Accepted Answer

Interest rates and inflation are correlated, meaning that as inflation decreases, so do interest rates. Therefore, since the early 1980s, interest rates have fallen because the inflation rate has declined.

Interest Rates Have Fallen Since the Early 1980s Because the