why did the federal reserve allow interest rates to rise in 1979?\nto reduce borrowing costs\nto encourage…

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

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

Answer

Answer:

To fight inflation

Brief Explanations:

In 1979, high - inflation was a major economic issue. The Federal Reserve raised interest rates to reduce the money supply and curb inflation. Higher interest rates make borrowing more expensive, reducing consumer and business spending which helps lower inflation.