Which statement about the economic crisis of the 1970s is INCORRECT? A. American manufacturing was in decline because U.S. manufacturing plants were old and inefficient compared to newer German and Japanese ones. B. A major economic problem was stagflation a combination of high inflation with a stagnant economy with high unemployment C. Rapid inflation was caused by the deficit spending on the Vietnam War and social programs of the Great Society. D. Low interest rates near 20% which artificially inflated the value of the U.S. dollar causing a major trade imbalance.
Which statement about the economic crisis of the 1970s is INCORRECT? A. American manufacturing was in decline because U.S. manufacturing plants were old and inefficient compared to newer German and Japanese ones. B. A major economic problem was stagflation a combination of high inflation with a stagnant economy with high unemployment C. Rapid inflation was caused by the deficit spending on the Vietnam War and social programs of the Great Society. D. Low interest rates near 20% which artificially inflated the value of the U.S. dollar causing a major trade imbalance.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which statement about the economic crisis of the 1970s is INCORRECT?
A. American manufacturing was in decline because U.S. manufacturing plants were old and inefficient compared to newer German and Japanese ones.
B. A major economic problem was stagflation a combination of high inflation with a
stagnant economy with high unemployment
C. Rapid inflation was caused by the deficit spending on the Vietnam War and social
programs of the Great Society.
D. Low interest rates near 20% which artificially inflated the value of the U.S. dollar
causing a major trade imbalance.
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