Which of the following was an important source of economic stability during the two decades following the recovery from the 1982 recession?
A) countercyclical fiscal policy instituted by Congress
B) a substantial increase in government spending as a share of the economy
C) monetary policy that kept the inflation rate low and relatively steady
D) balanced federal budgets throughout the period

Question

Quizplus · Accepted Answer

Monetary policy that kept the inflation rate low and relatively steady was an important source of economic stability during the two decades following the recovery from the 1982 recession. This helped to maintain a stable economic environment and encouraged businesses and consumers to invest and spend with confidence. Countercyclical fiscal policy and government spending also play important roles in economic stabilization, but they were not as crucial in this specific time period. Balanced federal budgets were not achieved consistently during this period.

Which of the Following Was an Important Source of Economic