The Stagflation of the 1970s

question 62

Multiple Choice

The stagflation of the 1970s

• A)threatened to undermine the social compact that had brought postwar stability.
• B)was caused in part by the oil embargo implemented to punish the West for its support of Israel.
• C)was a sign of globalization.
• D)was the result of global competition and rising unemployment, putting the labor movement on the defense.
• E)All of these.

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Definitions:

Treasury Bond

Long-term government debt securities with a fixed interest rate and maturity of more than 10 years.

Short-Term

A period of time that is relatively brief, usually focusing on immediate or near-future events or goals, often contrasted with long-term perspectives.

Student Loans

Borrowed money that is used to pay for educational expenses and is expected to be paid back with interest.

Discount Rate

The rate of interest applied to loans provided to commercial banks and other financial institutions by the Federal Reserve through its discount window.