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.

---

Definitions:

Psychological Distress

Emotional suffering or discomfort often characterized by symptoms of depression, anxiety, or stress.

Physical Health

The condition of a person's body, including the absence of disease, fitness level, and overall bodily function.

Social Identity

An individual's sense of who they are based on their group memberships, such as nationality, religion, or social class.

Self-concept

An individual's perception of themselves, including beliefs about one’s personality, physical characteristics, abilities, values, goals, and roles.