What Do Many Economists Think Contributed to the Greater Than

question 128

Multiple Choice

What do many economists think contributed to the greater than 13% inflation rates experienced by the United States in the 1980s?

• A) The Fed was inflexible in its rule of 3% growth.
• B) The Fed did not do enough to increase money supply.
• C) The Fed overstimulated the economy with too much money in the 1970s.
• D) The Fed did not react to the oil shocks of the 1970s.