In 1981, the Fed

question 99

Multiple Choice

In 1981, the Fed

• A)took no action so that the inflation rate skyrocketed.
• B)publicly announced an inflation reduction policy and created a recession.
• C)created an unexpected inflation reduction policy and created an expansion.
• D)publicly announced an inflation reduction policy and created an expansion.
• E)created an unexpected inflation reduction policy and created a recession.

---

Definitions:

Net Assets

The total assets of a company or organization minus its total liabilities, indicating its financial health.

Partnership

A sanctioned business model involving a partnership of two or more persons who equally divide management duties and profits.

Capital Balances

The amounts recorded in the equity section of a partnership or corporation's balance sheet, representing the owners' stakes in the company.

Income Ratios

Financial ratios that measure a company's ability to generate profit from its operations, commonly used in analyzing financial health and operational efficiency.