-Start from Any Equilibrium in Figure 12

Multiple Choice

-Start from any equilibrium in Figure 12.5 to answer the following question.In 1980,U.S.inflation hit about 14 percent;Federal Reserve chairman __________ engineered a decline in inflation by __________,shown in the figure as movement from __________.

A) Volcker;raising inflation rates;b to c
B) Bernanke;raising interest rates;b to d
C) Volcker;lowering interest rates;c to b
D) Volcker;raising interest rates;b to c
E) Greenspan;lowering interest rates;a to b