The trend toward a decline in the rate of inflation since the middle to late 1980s has been generally attributed to
A) higher prices abroad, leading to a reduction in our imports.
B) the growth in manufacturing employment relative to employment in services.
C) an increase in tariffs to keep out foreign goods.
D) the monetary policy pursued by the Fed.
E) expansionary fiscal programs undertaken by Presidents Bush and Clinton.

Question

Quizplus · Accepted Answer

The decline in inflation rate has been attributed to the monetary policy pursued by the Fed, which includes the regulation of interest rates and the money supply in order to achieve their goals of stabilizing prices and promoting economic growth.

The Trend Toward a Decline in the Rate of Inflation