Why did higher interest rates fail to slow down the economy


Problem

In the late 1970s interest rates soared but the economy remained healthy. Why did higher interest rates fail to slow down the economy in 1977-8, but cause recessions in 1980 and 1981?

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.

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Macroeconomics: Why did higher interest rates fail to slow down the economy
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