The Fed Dealt with High Inflation in the 1980s By

question 22

Multiple Choice

The Fed dealt with high inflation in the 1980s by:

• A) reducing the money supply and causing aggregate demand to fall.
• B) raising the money supply and causing aggregate demand to rise.
• C) reducing the money supply and causing aggregate demand to rise.
• D) raising the money supply and causing aggregate demand to fall.

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Definitions:

Stimuli

External cues or signals that can elicit responses from an organism or a sensory system.

Consumer Goods

Products and commodities that are bought and used by individuals or households for personal enjoyment or need.

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, resulting in blurred vision.

Accommodation

In cognitive psychology, the process of modifying existing cognitive schemas or perceptions to incorporate new information.