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When considerable overlap occurred between inflation and recession in the last half of the 1970s and early​ 1980s, the Fed responded by
A. keeping interest rates high.
B. pursuing a rapid expansion of the monetary base.
C. pushing interest rates down to near zero.
D. adopting a policy of inflation targeting.

Respuesta :

Answer:

A. keeping interest rates high.

Explanation:

In the late 1970s. The rate of inflation was very high, exceeding 10% in 1979 and 1980, so the Federal Reserve used tight monetary policy to raise interest rates, with the federal funds rate rising from 5.5% in 1977 to 16.4% in 1981.

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