The Economy in the 1970s Answers

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Which of the following best describes President Carter’s energy policy?

A
It promoted increased energy consumption.
B
It promoted decreased energy consumption.
C
It disbanded OPEC to free up foreign oil supplies.
D
It forced the United States to produce enough oil for itself.
23

What triggered the second oil shock in 1979?

A
Reduced demand for oil
B
A revolution in Iran
C
Increased demand for oil
D
A shortage in the United States
24

What does Carter mean when he says conservation is “the cheapest source of energy”?

A
Energy that is not used does not have to be paid for.
B
Alternative sources of energy are cheaper than oil.
C
Conservation makes oil basically free.
D
Energy needs will increase if people conserve more.
26

Which of the following takes place during a time of stagflation?Check all of the boxes that apply.

A
High inflation
B
High economic growth
C
Low unemployment
D
High unemployment
E
Low economic growth
28

The purpose of this measure is to

A
Increase employment.
B
Combat inflation.
C
Lower interest rates.
D
Control consumption.
29

Reducing the regulations on businesses was part of President Carter’s plan to

A
Lower interest rates.
B
Lower inflation.
C
Raise unemployment.
D
Raise interest rates.
31

What effects did the oil shock have on the United States? Check all of the boxes that apply.

A
Economic stability
B
Gas shortages
C
High gas prices
D
Greatly increased oil production
E
Economic slowdown
32

What was the Community Reinvestment Act of 1977?

A
A law taxing communities and giving that money to banks
B
A law that gave money to people in low-income areas
C
A law that encouraged bank lending in low-income areas
D
A law taxing banks and lending that money to low-income people
33

What happened when stagflation became a problem for the economy during Carter’s presidency?

A
The economy grew slowly even though the unemployment rate was low.
B
Prices got very low so consumers could afford more goods.
C
Prices got too high for consumers to afford.
D
The economy grew quickly even though the unemployment rate was high.
35

The purpose of this measure is to

A
Increase employment.
B
Combat inflation.
C
Lower interest rates.
D
Control consumption.
36

Reducing the regulations on businesses was part of President Carter’s plan to

A
Lower interest rates.
B
Lower inflation.
C
Raise unemployment.
D
Raise interest rates.
38

What effects did the oil shock have on the United States? Check all of the boxes that apply.

A
Economic stability
B
Gas shortages
C
High gas prices
D
Greatly increased oil production
E
Economic slowdown
39

Put these events in the correct order in which they occurred during Carter’s presidency. 1✔ 23 Borrowing declined.✔ 123 Interest rates rose.12✔ 3 Inflation dropped, slowing the economy.

A
1
B
✔ 2
C
3

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