Because the Carter Credit Controls of 1980 Were Unexpected and Imposed

question 31

Multiple Choice

Because the Carter credit controls of 1980 were unexpected and imposed by the government, we can conclude that

• A)the subsequent decline in demand for bank loans most likely caused the 1980 recession.
• B)the subsequent decline in bank loans was the result of a shift in bank loan supply that was independent of any shift in bank loan demand.
• C)the subsequent decline in the supply of bank loans was most likely caused by the 1980 recession.
• D)the controls led to an increase in the demand for money.