During the 1990s,interest rates became ________ volatile than in the 1980s because the Fed used open market operations to ________ shifts in the IS and LM curves.

Question

Quizplus · Accepted Answer

During the 1990s, the Federal Reserve effectively used open market operations to stabilize the economy, making interest rates less volatile than in the 1980s. By offsetting shifts in the IS (Investment-Savings) and LM (Liquidity preference-Money supply) curves, the Fed was able to smooth out fluctuations in interest rates.

During the 1990s,interest Rates Became ________ Volatile Than in the 1980s