19
QuizMultiple Choice

The Economy in the 1970s

Question 19 • U.S. History 2026 - 3311 B

Under President Carter, the Federal Reserve

Answer
A
raised interest rates in an attempt to slow down inflation.
B
lowered interest rates in an attempt to help the economy.
C
increased discrimination against borrowers.
D
decreased wages paid to federal workers.

Explanation

Inflation was high during Carter’s presidency, so the Federal Reserve raised interest rates to make borrowing more expensive and reduce spending. This was intended to slow price increases. Therefore, the correct choice is “raised interest rates in an attempt to slow down inflation.”

AI-written and checked against the verified answer.

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