In the history of monetary policy,the period of October 1979 to October 1982 was notable for
A)being a period of steady prices and low unemployment
B)the emphasis placed on controlling interest rates during that period
C)the emphasis placed on controlling the money supply during that period
D)the rapid increase in the growth of the money supply during that period
E)the rapid rise in prices during that period

Question

Quizplus · Accepted Answer

The period of October 1979 to October 1982 was notable for the emphasis placed on controlling the money supply during that period. This was part of the Federal Reserve's effort to combat inflation, which had been rising rapidly. The Fed implemented a policy of tight monetary control, which involved reducing the growth rate of the money supply. The policy was successful in bringing down inflation, although it also led to a period of high interest rates and slower economic growth.

In the History of Monetary Policy,the Period of October 1979