Question

How did President Nixon combat inflation?

1.) How did President Nixon combat inflation?

2.) By imposing wage and price controls

3.) By appointing Paul Volker as chairperson of the Federal Reserve

4.) By increasing government spending

Answer 1

 By imposing wage and price controls

Answer 2

Answer:

2. Imposing wage price controls is the correct answer.

Explanation:

Richard Nixon was the 37th president of the US and served from 1969 to 1974. He opened trade with China in 1973, ended the Vietnam war and negotiated a treaty with Brezhnev to limit strategic nuclear weapons. US economy suffered a lot during his tenure as a president. He tried to control the inflation and imposed wage-price control policies by bypassing the free marketing economy of the US. He also ended the gold standard and tied the value of the dollar to the gold. All these steps led to stagflation and later to the 1981 recession.