When Paul Volcker first started to head the Fed, the Federal Reserve began a policy of
A)reinflation.
B)disinflation.
C)accommodation.
D)deflation.
E)stagflation.

Question

Quizplus · Accepted Answer

When Paul Volcker first started to head the Fed in 1979, the economy was facing high inflation. To combat this issue, Volcker began a policy of disinflation, which involved raising interest rates and limiting the growth of the money supply. This policy led to a period of economic slowdown and high unemployment, but ultimately succeeded in bringing down inflation.

When Paul Volcker First Started to Head the Fed, the Federal