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:

Obligations

Duties or commitments that an individual or organization is bound to by law, contract, or moral responsibility.

Honesty

The quality of being truthful and transparent in actions, communications, and transactions.

Property Tax Purposes

The use of property evaluation to determine the amount owed by property owners to municipal or county governments as property tax.

National Retail Chain

A series of retail stores operating under the same brand and management across multiple locations nationwide.