During the 1980s and 1990s, the Federal Reserve's monetary policy focused primarily on
A) keeping short-term interest rates low in order to stimulate real output and economic growth.
B) a variety of factors, such as unemployment and real GDP, resulting in variable inflation rates throughout this period.
C) keeping inflation low and the general price level relatively stable.
D) monetary expansion in order to reduce unemployment.

Question

Quizplus · Accepted Answer

During the 1980s and 1990s, the Federal Reserve, under the leadership of Paul Volcker and later Alan Greenspan, focused on controlling inflation and maintaining price stability as a primary goal of monetary policy.

During the 1980s and 1990s, the Federal Reserve's Monetary Policy