Multiple Choice
In the 1960s,the U.S.experienced ongoing inflation.What was the main cause of this inflation?
A) The economy's self-correcting mechanism was allowed to operate.
B) The Federal Reserve maintained an output target.
C) The Federal Reserve increased the money supply in response to positive demand shocks.
D) The Federal Reserve pursued an active monetary policy.
E) The Federal Reserve increased the money supply in response to negative demand shocks.
Correct Answer:
Verified
Correct Answer:
Verified
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