In 1979, the CPI Rose 13

question 79

Multiple Choice

In 1979, the CPI rose 13.5%, the highest inflation rate recorded in the twentieth century.Public opinion polls in 1979 consistently showed that most people regarded inflation as the leading problem facing the U.S.How did the Fed respond to this situation?

• A)It continued to pursue expansionary policies to avert a potential recession caused by rising oil prices.
• B)It switched from discretionary monetary policy to a fixed money growth rate rule where the growth rate was under 3%.
• C)It pursued contractionary policies with the primary goal of lowering inflation.
• D)It adopted a hands-off approach, relying on the economy's self correcting mechanism to lower inflation.

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Definitions:

Human Being

A member of the species Homo sapiens, characterized by advanced cognitive abilities, use of language, and complex social behaviors.

Brain

The organ located in the skull that coordinates and controls activities of the nervous system, including thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Polarized

Polarized is a term used to describe a situation, opinion, or group that is divided into two extreme positions, with no apparent middle ground.

Neural Membrane

The lipid bilayer that encloses the cytoplasm of neurons, essential for conducting electrical impulses.