6
QuizMultiple Choice

The Cold War Ends — Unit test

Question 6 • MS U.S. History - SS3307 B-IC

What happened when Carter authorized increased government spending to help the economy?

Answer
A
inflation worsened
B
interest rates dropped
C
money supply dropped
D
unemployment decreased

Explanation

Carter authorized increased government spending as an effort to stimulate the economy. The added spending increased demand, which put more upward pressure on prices; inflation worsened. The correct choice is “inflation worsened,” not a drop in interest rates or the money supply.

AI-written and checked against the verified answer.

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