The federal reserve’s attempts to reduce inflation in 1979 caused the economy to improve slowly. had no real impact on the economy. caused the economy to slow further. caused the economy to improve greatly.

The correct answer is C). Caused the economy to slow further.

Paul Volcker, in 1979, became chairman of the Federal Reserve Board. He had been the president of the Federal Reserve Bank of New York. In August 1979, the inflation rate was 11 percent and the U.S. had severe problems of employment. Many people were jobless.

The attempts of the Federal Reserve’s to reduce inflation, focused on “control over the growth rate of reserves and broad money.” But stronger measures to control the growth of the money supply were required. That caused a disruption to economic activity and the U.S. economy slowed further.

C

Explanation: