Interest rates decreased during the 1980s because expectations of future inflation were lower.

Name: Interest rates decreased during the 1980s because expectations of future inflation were lower.
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This is true as one of the main drivers of interest rates is inflation expectations. When expectations of future inflation are lower, lenders are willing to accept lower interest rates because they anticipate that the purchasing power of the money they receive in repayment will be more valuable in the future.

Interest Rates Decreased During the 1980s Because Expectations of Future