Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included
A) increased personal and corporate tax rates.
B) price and wage controls.
C) reduced purchases of government debt by the Federal Reserve.
D) discontinuance of the practice of "pegging" interest rates.
E) All of the above.

Question

Policies adopted by the Truman administration effectively avoided inflation during the Korean War.  These policies included
A) increased personal and corporate tax rates.
B) price and wage controls.
C) reduced purchases of government debt by the Federal Reserve.
D) discontinuance of the practice of "pegging" interest rates.
E) All of the above.

Quizplus · Accepted Answer

The Truman administration implemented a combination of measures to avoid inflation during the Korean War, including increased personal and corporate tax rates, price and wage controls, reduced purchases of government debt by the Federal Reserve, and discontinuing the practice of "pegging" interest rates. These policies were aimed at controlling inflationary pressures that typically arise during periods of increased government spending, such as during a war.

Policies Adopted by the Truman Administration Effectively Avoided Inflation During