Question

why did the federal reserve allow interest rates to rise in 1979?
to reduce borrowing costs
to encourage inflation
to reduce unemployment
to fight inflation
complete
choose the right word or phrase to complete this sentence.
the fed’s interest - rate policy in the late 1970s slowed economic growth.
complete
put these events in the correct order in which they occurred during carter’s presidency.
borrowing declined.
interest rates rose.
inflation dropped, slowing the economy.
done

Explanation:

1. For the first question: In 1979, the U.S. faced high inflation. The Federal Reserve raised interest rates to reduce spending and curb inflation, as higher rates make borrowing more expensive, slowing demand which lowers inflation.
2. For the sentence completion: High interest rates in the late 1970s made borrowing costly, which reduced business and consumer spending, slowing overall economic growth.
3. For the event order: The Fed first raised interest rates, which made borrowing more expensive so borrowing declined; this reduced spending, leading to lower inflation and a slowdown in the economy.

Answer:

1. Why did the Federal Reserve allow interest rates to rise in 1979?

• To fight inflation

1. Choose the right word or phrase to complete this sentence.

• The Fed's interest-rate policy in the late 1970s slowed economic growth.

1. Put these events in the correct order in which they occurred during Carter's presidency:
2. Interest rates rose.
3. Borrowing declined.
4. Inflation dropped, slowing the economy.