Author Question: The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s ... (Read 117 times)

jlmhmf · **on:** Jun 29, 2018

The experience of Paul Volcker's fight against inflation during the late 1970s and early 1980s indicates that firms and workers

A) had adaptive expectations.
B) had rational expectations and that they trusted Fed announcements.
C) preferred high unemployment to high inflation.
D) Both A and B are correct answers.

Question 2

In 2008, the Treasury and Federal Reserve took several actions in response to the deepening financial crisis. One action was the Treasury's move to have the federal government take control of

A) JPMorgan Chase.
B) Fannie Mae and Freddie Mac.
C) the Federal Deposit Insurance Corporation (FDIC).
D) Lehman Brothers.