Looking at inflation rates in the United States since the 1970s we see that
A) the inflation rate increased with the increased growth of the 1990s.
B) the highest inflation rates were the double digits during the 1990s.
C) inflation fell the most during the 1970s productivity slowdown.
D) the 1970s experienced the highest inflation rates.

Question

Quizplus · Accepted Answer

The statement "the 1970s experienced the highest inflation rates" is true, making choice D the best answer. The inflation rate was at its highest during this decade, with double-digit inflation rates being seen for some years. The inflation rate also fell during the 1980s due to the monetary policy implemented by the Federal Reserve. Although the growth of the 1990s was significant, it did not lead to a significant increase in inflation rates. The productivity slowdown of the 1970s was actually accompanied by high inflation rates.

Looking at Inflation Rates in the United States Since the 1970s