Studies in the 1980s and Early 1990s Showed That, in General

question 151

Multiple Choice

Studies in the 1980s and early 1990s showed that, in general, greater central bank independence

• A) was associated with lower average inflation.
• B) was associated with lower average inflation and higher average real GDP growth.
• C) was associated with lower average inflation and higher unemployment.
• D) was associated with higher average inflation and higher average real GDP growth.

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Definitions:

Mason-Dixon Line

A demarcation line originally surveyed in the 1760s that came to symbolize the cultural boundary between the Northern and Southern United States.

Railroad Industry

The sector of the economy involved in the operation of trains and the management of train transportation.

Coal Mining

The process of extracting coal from the ground, which has historically been a major industry in various parts of the world, including the United States and the United Kingdom.

European Rail System

The extensive network of railways connecting various countries across Europe, known for its efficiency and connectivity, offering both freight and passenger services.