Since 1979 when inflation soared into the double-digit, the Federal Reserve's policies
A) have been focused on moving the economy to its potential output.
B) have clearly shown a reduced tolerance for inflation.
C) were concentrated on bringing the price of oil down.
D) have moved toward restraining growth in financial markets.

Question

Quizplus · Accepted Answer

The statement mentions that since 1979 when inflation soared into the double-digit, the Federal Reserve's policies have "clearly shown a reduced tolerance for inflation." This suggests that the Federal Reserve's policies have focused on combating inflation rather than the other options listed.

Since 1979 When Inflation Soared into the Double-Digit, the Federal