Paul Volcker, former chair of the Fed, implemented
A)contractionary policy, which increased the popularity of the U.S.president who had appointed him.
B)contractionary policy, which decreased the popularity of the U.S.president who had appointed him.
C)expansionary policy, which increased the popularity of the U.S.president who had appointed him.
D)expansionary policy, which decreased the popularity of the U.S.president who had appointed him.

Question

Quizplus · Accepted Answer

Paul Volcker, appointed by President Jimmy Carter, implemented a contractionary monetary policy to combat high inflation, which involved raising interest rates. This move was initially unpopular as it led to a recession and decreased Carter's popularity, contributing to his loss in the 1980 reelection.

Paul Volcker, Former Chair of the Fed, Implemented