In response to the sharp decline in stock prices in October 1987,the Federal Reserve
A)increased interest rates,and the economy avoided a recession.
B)increased interest rates,but the economy was unable to avoid a recession.
C)decreased interest rates,and the economy avoided a recession.
D)decreased interest rates,but the economy was unable to avoid a recession.

Question

Quizplus · Accepted Answer

In response to the sharp decline in stock prices in October 1987, the Federal Reserve decreased interest rates to keep the economy from falling into a recession. This action proved successful, as the economy was able to avoid a recession.

In Response to the Sharp Decline in Stock Prices in October