12
QuizMultiple Choice

The End of the Cold War — Unit test

Question 12 • Learning Lab - US History B-CR (26-27)

The actions of the Federal Reserve during President Carter’s term resulted in

Answer
A
Americans paying higher interest rates on home and car loans.
B
Americans paying lower interest rates on home and car loans.
C
Americans losing homes and cars because of higher interest rates.
D
Americans buying expensive homes and cars because of lower interest rates.

Explanation

To fight high inflation near the end of Carter’s term, the Federal Reserve raised interest rates. Higher rates made borrowing more expensive, so Americans paid more interest on loans for homes and cars. This supports choice A; the policy did not lower loan rates, as choice B suggests.

AI-written and checked against the verified answer.

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