In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the: ?

Question

In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the: ?

Quizplus · Accepted Answer

During the period of 1979 to 1982, the Federal Reserve, under Chairman Paul Volcker, raised interest rates to unprecedented levels to combat high inflation. Setting a target equal to the actual high market rates would have been politically challenging due to the significant economic pain it caused, including high unemployment and slowed economic growth.

In the Period of 1979 to 1982, If the Fed