Interest rates were high during the 1970s and decreased during the 1980s because expected inflation was:

Question

Quizplus · Accepted Answer

Interest rates are typically influenced by inflation expectations. During the 1970s, inflation was high and therefore interest rates were also high. However, during the 1980s, inflation decreased due to various reasons such as tight monetary policy, lower oil prices and increased global competition, resulting in a decrease in interest rates.

Interest Rates Were High During the 1970s and Decreased During