History generally supports the contention that under the guidance of Paul Volcker, a (n) ____________ Fed policy brought down the double-digit inflation of the 1970s and the early 1980s, and the Federal Open Market Committee consistently responded to his leadership.
A) loosening of
B) restrictive
C) expansionary
D) None of the above

Question

Quizplus · Accepted Answer

The word "restrictive" implies a tighter monetary policy, which is what Volcker implemented to bring down inflation. Choices A and C suggest the opposite approach, while option D is not a valid choice as it does not provide an answer.

History Generally Supports the Contention That Under the Guidance of Paul