Which of the following was true for the recession of 1981/82?
A)nominal interest rates declined from 14.0% in 1981 to 10.7% in 1982, while real interest rates increased from 4.0% to 4.5%
B)the unemployment rate went above 11%, a higher level than in the Great Depression
C)the T-bill rate was lower than it ever was in the 1970s
D)real interest rates decreased steadily after 1981
E)all of the above

Question

Quizplus · Accepted Answer

During the recession of 1981/82, nominal interest rates did decline from 14.0% in 1981 to 10.7% in 1982, and real interest rates increased from 4.0% to 4.5%. This period was marked by high interest rates as part of the monetary policy to combat inflation.

Which of the Following Was True for the Recession of 1981/82