Use the following figure to answer the question :

-Interest rates increased continuously during the 1970s. The most likely explanation is
A)banking failures that reduced the money supply.
B)a rise in the level of income.
C)the repeated bouts of recession and expansion.
D)increasing expected rates of inflation.

Question

Use the following figure to answer the question :

-Interest rates increased continuously during the 1970s. The most likely explanation is
A)banking failures that reduced the money supply. 
B)a rise in the level of income. 
C)the repeated bouts of recession and expansion. 
D)increasing expected rates of inflation.

Quizplus · Accepted Answer

Increasing expected rates of inflation.

Use the Following Figure to Answer the Question