The high rates of inflation that were experienced in the 1970s could partly be blamed on:

Question

Quizplus · Accepted Answer

All of the answers listed contributed to the high rates of inflation in the 1970s. The assumption that the economy would continue to grow at the same rate led to an increase in spending and borrowing. The Viet Nam war led to increased government spending, which also contributed to inflation. Lastly, high oil prices caused an increase in production costs and reduced economic growth, leading to higher prices for goods and services.

The High Rates of Inflation That Were Experienced in the 1970s