Which of the following was a cause of stagflation when Paul Volcker was appointed chairman of the Federal Reserve in 1979?

Question

Quizplus · Accepted Answer

Stagflation, a combination of stagnant economic growth and high inflation, was partly caused by huge budget deficits during the period when Paul Volcker was appointed chairman of the Federal Reserve in 1979. These deficits increased the national debt, leading to higher interest rates and reduced investment, exacerbating inflation without stimulating growth.

Which of the Following Was a Cause of Stagflation When