Figure 33-8

In Figure 33-8, which of the following movements reflects the Fed's anti-inflationary policy of the early 1980s and the following market adjustment?

Question

Figure 33-8

In Figure 33-8, which of the following movements reflects the Fed's anti-inflationary policy of the early 1980s and the following market adjustment?

Quizplus · Accepted Answer

The movement from C to D reflects the Fed's anti-inflationary policy of the early 1980s, as the Fed raised interest rates to combat inflation. The movement from D to E reflects the market adjustment that followed as interest rates peaked and then began to decline.

Figure 33-8 in Figure 33-8, Which of the Following Movements Reflects the Movements