Problem
"Interest rates continue to climb because the Federal Reserve 1 is apparently unwilling to make sufficient credit available to the economy. Unless the Federal Reserve loosens the monetary screw, we can expect high interest rates to continue." [New caster during the 1974 of inflation and high interest rates]
a. Does this view make economic sense in the short run? In the long run? Why or why not? How might a politician react to your analysis, prior to an election?
b. Were the high interest rates of the 1972-1974 (or those of 1978-1979) the result of restrictive monetary policy?
c. Were the relatively low interest rates of the 1950s the result of expansionary monetary policy? Check the data when answering both a and b.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.