The Restrictive Monetary Policy Followed by the Fed in the Early

question 22

Multiple Choice

The restrictive monetary policy followed by the Fed in the early 1980s

• A)reduced both unemployment and inflation.
• B)reduced inflation significantly,but at the cost of a severe recession.
• C)reduced unemployment significantly,but at the cost of higher inflation.
• D)raised both unemployment and inflation.

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Definitions:

War on Drugs

A campaign of prohibition and foreign military aid and military intervention undertaken by the U.S. government with the aim of reducing the illegal drug trade.

Drug Trafficking

The illegal trade involving the cultivation, manufacture, distribution, and sale of substances subject to drug prohibition laws.

Racial Stereotypes

Generalized beliefs or assumptions about the characteristics, attributes, and behaviors of members of a particular race, often leading to simplistic and erroneous judgements.

Violent Crime

Acts of crime that involve force or the threat of force against others, including homicide, rape, robbery, and assault.