In 2011, the Federal Reserve worried about:
A) the threat of stagflation, the simultaneous existence of high inflation and high unemployment.
B) hyperinflation, and it used strong disinflationary policies to bring the rise in prices under control.
C) a healthy, booming economy, and it used fine-tuning methods to keep the growing economy on track.
D) a deep recession with falling prices, and it used stabilization policies to take the economy out of the slump.

Question

Quizplus · Accepted Answer

In 2011, the Federal Reserve was worried about the threat of stagflation, as high unemployment and high inflation existed simultaneously. The Fed used policies to address both of these issues, such as keeping interest rates low to stimulate economic growth and implementing quantitative easing to keep inflation from spiraling out of control.

In 2011, the Federal Reserve Worried About