In 1979, the inflation rate reached about 14 percent, due in part to ________. The Board of Governors of the Federal Reserve under ________ decided to ________ interest rates, sending the economy into a ________.

Question

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In 1979, inflation was significantly impacted by an increase in oil prices. Paul Volcker, who was the Chairman of the Federal Reserve at the time, implemented a policy of raising interest rates to combat inflation, which contributed to the economy entering a recession.

In 1979, the Inflation Rate Reached About 14 Percent, Due