Question

why did the federal reserve allow interest rates to rise in 1979?
to reduce borrowing costs
to encourage inflation
to reduce unemployment
to fight inflation
done

Explanation:

In 1979, the U.S. faced high, persistent inflation. The Federal Reserve uses higher interest rates to reduce consumer and business borrowing/spending, which slows demand and curbs inflation. The other options are incorrect: higher rates increase borrowing costs, discourage inflation, and can temporarily raise unemployment.

Answer:

To fight inflation