A reduction in the target rate of inflation
A)occurred during the 1970s.
B)has never occurred in the United States.
C)is what caused the Great Depression.
D)occurred in the United States during the early 1980s.
E)occurred in the United States during the late 1960s.

Question

Quizplus · Accepted Answer

A reduction in the target rate of inflation occurred in the United States during the early 1980s under the guidance of Paul Volcker, who was appointed as the chairman of the Federal Reserve in 1979. He implemented policies that raised interest rates and reduced the money supply to combat high inflation, which was causing economic instability in the country. This led to a reduction in the target rate of inflation, and eventually, a return to more stable economic conditions.

A Reduction in the Target Rate of Inflation