What effect did reducing U.S. inflation from 13.5 percent in 1980 to 3 percent in 1983 have?
A) Wealth was shifted from lenders to borrowers.
B) The unemployment rate fell to 4 percent.
C) The country experienced a recession.
D) Per capita income increased by 18 percent in three years.

Question

Quizplus · Accepted Answer

Reducing inflation during this period was associated with tight monetary policy, which led to a recession in the early 1980s.

What Effect Did Reducing U