Question

what did the federal reserve do to try to reduce inflation?
allowed interest rates to fall
✓ allowed interest rates to rise
instituted price controls
complete
how did rising interest rates affect americans?
○ it became cheaper to buy cars and homes.
○ americans had to pay higher interest on loans.
○ loan payments dropped greatly over time.
lone ✓

Explanation:

For the first question, the Federal Reserve uses higher interest rates to cool economic activity and reduce inflation by making borrowing more expensive, which slows spending. For the second question, rising interest rates increase the cost of borrowing, so Americans pay more in interest on loans like mortgages, car loans, and credit cards.

Answer:

1. Allowed interest rates to rise
2. Americans had to pay higher interest on loans.