The relatively low inflation experienced in the United States in the 1990s is attributable to
A)slow growth of U.S.productivity during the 1990s.
B)slow growth of the quantity of money in the U.S.in the 1990s.
C)low levels of government spending in the U.S.in the 1980s and 1990s.
D)the eight-year presidency of William Jefferson Clinton during the 1990s.

Question

Quizplus · Accepted Answer

Slow growth of the quantity of money in the U.S. in the 1990s contributed to the low inflation experienced during this period. The Federal Reserve was maintaining a tight monetary policy, which limited the growth of the money supply and helped to keep inflation in check.

The Relatively Low Inflation Experienced in the United States in the 1990s