Recent Research Has Found That Countries with the Most Independent

question 51

Multiple Choice

Recent research has found that countries with the most independent central banks have experienced ________.

• A) the lowest average rates of inflation
• B) rates of inflation no different from countries with less independent central banks
• C) the highest average rates of inflation
• D) high inflation from financing deficits

---

Definitions:

Income

The monetary payment received for work or through investments, pensions, or subsidies, used for consumption and saving.

Budget Constraint

A limitation on the consumption choices of individuals based on their income and the prices of goods and services.

Income

Regular earnings from employment or investment.

Budget Constraint

The limitations on the consumption choices of an individual or household as a result of limited income and finite prices of goods and services.