In 1980,the inflation rate reached about 14 percent,due in part to ___________.The Board of Governors of the Federal Reserve under __________ decided to __________ interest rates,sending the economy into a __________.
A)a fall in oil prices;Volcker;raise;recession
B)an increase consumer spending;Volcker;reduce;recession
C)an increase in oil prices;Volcker;raise;recession
D)an increase in oil prices;Volcker;reduce;boom
E)a fall in oil prices;Greenspan;raise;recession

Question

Quizplus · Accepted Answer

The question states that inflation was a problem in 1980, and the answer choices reflect different actions that the Federal Reserve could have taken to combat inflation. Choice C correctly identifies that the inflation was due in part to an increase in oil prices, and that the Federal Reserve, under the leadership of Paul Volcker, decided to raise interest rates in response. This led to a recession, which is a period of economic decline characterized by falling GDP and rising unemployment. None of the other answer choices accurately reflect the historical events described, making choice C the best answer.

In 1980,the Inflation Rate Reached About 14 Percent,due in Part