In 1979, the Inflation Rate Reached About 14 Percent

question 99

Multiple Choice

In 1979, the inflation rate reached about 14 percent. The Federal Reserve ________ interest rates, sending the economy into a(n) ________. When doing so, the Federal Reserve knew this would be the case because of the ________.

• A) raised; expansion; Phillips curve
• B) raised; recession; Phillips curve
• C) raised; recession; Okun relationship
• D) lowered; recession; Phillips curve
• E) lowered; expansion; Phillips curve

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Definitions:

Glucagon

A hormone produced by the pancreas that increases blood glucose levels, counteracting the action of insulin.

Histamine

A compound involved in local immune responses, regulating physiological function in the gut and acting as a neurotransmitter.

Sociocultural

Pertains to the interaction of social and cultural elements in society.

Situational

Pertaining to or determined by external conditions or situations, often implying a temporary state.