Monetary policy created the 1980-82 recession by ___ and ___. a. raising interest rates to lower...
Monetary policy created the 1980-82 recession by ___ and
___.
a. raising interest rates to lower spending,
inflation and inflation expectations
b. lowering interest rates to lower spending, inflation and inflation expectations
c. moving the economy off the Gold Standard following the 1970s oil shocks
d. raising taxes to take money out of the economy
Homework Answers
Answer : Option A is correct. Monetary policy created the 1980-1982 raising interest rate to lowering the spending , inflation as well as inflation expectations from the society. It means that raising interest rate which slows the spending power in an economy as well as decreased the inflation pressure. Contractionary monetary policy has been adopted.
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Monetary policy created the 1980-82 recession by ___ and
___.
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