Which of the Following Was a Consequence of the Federal

question 75

Multiple Choice

Which of the following was a consequence of the Federal Reserve Board's 1981 decision to tighten the money supply?

• A) The inflation rate increased.
• B) Interest rates began a slow but steady decline.
• C) Economic activity declined and the unemployment rate increased.
• D) Federal budget deficits were brought under control.

---

Definitions:

Community Sharing

A social arrangement characterized by the collective ownership and use of resources among community members.

Metaphysical Environment

An abstract concept referring to environments or conditions that go beyond the physical realm, often relating to philosophical or spiritual aspects.

Anthropologist

A scientist who studies human societies, cultures, and their development.

Physical Environment

The surrounding conditions, including natural and artificial, in which an organism lives and operates.