The Federal Reserve's monetary policy approach during the 1980s was deeply _____ supply-side economic theory: Chairman Paul Volcker's interest rate...
GMAT Craft and Structure : (Structure) Questions
The Federal Reserve's monetary policy approach during the 1980s was deeply _____ supply-side economic theory: Chairman Paul Volcker's interest rate decisions reflected core principles of controlling inflation through money supply management.
Which choice completes the text with the most logical and precise word or phrase?
separate from
rooted in
opposed to
independent of
Step 1: Decode and Map the Passage
Create Passage Analysis Table
| Text from Passage | Analysis |
|---|---|
| "The Federal Reserve's monetary policy approach during the 1980s was deeply" |
|
| [MISSING WORD/PHRASE] |
|
| "supply-side economic theory:" |
|
| "Chairman Paul Volcker's interest rate decisions reflected core principles of controlling inflation through money supply management." |
|
Provide Passage Architecture & Core Elements
Main Point: The Federal Reserve's monetary policy in the 1980s had a specific relationship to supply-side economic theory, as demonstrated by Volcker's inflation-control decisions.
Argument Flow: The passage establishes a relationship between Fed policy and supply-side theory, then immediately provides evidence through Volcker's specific interest rate decisions that reflected supply-side principles.
Step 2: Interpret the Question Precisely
This is a fill-in-the-blank question asking us to choose the best logical connector. The answer must create the right relationship between what comes before and after the blank.
Step 3: Prethink the Answer
- The blank needs to show how the Fed's approach related to supply-side theory
- The colon after "supply-side economic theory" signals that what follows will explain or support this relationship
- The evidence shows Volcker's decisions "reflected core principles" of inflation control through money supply management—this suggests the Fed's approach was based on or grounded in supply-side theory, not separate from it
separate from
- "Separate from" would mean the Fed's approach was distinct from supply-side theory
- This contradicts the evidence that Volcker's decisions "reflected core principles" of supply-side thinking
rooted in
- "Rooted in" means the Fed's approach was fundamentally based on supply-side theory
- This perfectly matches the evidence that Volcker's decisions reflected supply-side principles
opposed to
- "Opposed to" would mean the Fed actively worked against supply-side theory
- This directly contradicts the evidence showing Volcker followed supply-side principles
independent of
- "Independent of" suggests the Fed's approach had no connection to supply-side theory
- This contradicts the evidence that Volcker's decisions reflected supply-side principles