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📝 The 1970s and 1980s: serious economic problems in the USA

📖 From World History: Modern • 27. The Changing World Economy Since 1900 • 8 questions available

Practice MCQs for The 1970s and 1980s: serious economic problems in the USA. Test your knowledge with carefully crafted questions across easy, medium, and hard difficulty levels.

🔄 Last updated: 2026-07-25

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📝 Sample Questions

Q1. In which year did President Nixon devalue the U.S. dollar by about \(12\%\) and impose a \(10\%\) import duty?

🔹 A. 1971

🔹 B. 1973

🔹 C. 1975

🔹 D. 1979

💡 Difficulty: easy | ✅ Correct: A

Q2. What was the primary economic reason that high defense spending in the 1970s and 1980s contributed to a persistent U.S. budget deficit?

🔹 A. It increased tax revenues

🔹 B. It reduced interest rates

🔹 C. It raised government expenditures beyond tax receipts

🔹 D. It boosted export earnings

💡 Difficulty: medium | ✅ Correct: C

Q3. How did Milton Friedman's monetarist policy of tightening the money supply aim to improve business efficiency in the 1980s?

🔹 A. By lowering interest rates to encourage borrowing

🔹 B. By raising interest rates to limit excess credit

🔹 C. By increasing government subsidies

🔹 D. By fixing prices of goods

💡 Difficulty: hard | ✅ Correct: B

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