An Index Constructed by Alberto Alesina and Lawrence Summers Measuring

question 18

Multiple Choice

An index constructed by Alberto Alesina and Lawrence Summers measuring central bank independence for a sample of industrialized countries during the late 1980s notes that the

• A)most countries have completely independent central banks.
• B)countries with less independent central banks had lower inflation rates.
• C)the most independent central banks were those of Switzerland and Germany,followed by the U.S.Federal Reserve.
• D)there has been a trend away from central bank independence among countries
• E)both c and d

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Definitions:

Perception

The process of organizing, interpreting, and understanding sensory information.

Cultivation Theory

A theory in communication that suggests long-term exposure to media, especially television, shapes viewers' perceptions of reality.

Socializing Agent

An individual, group, or institution that plays a role in integrating individuals into society, teaching social norms, and values.

Modern Society

A society characterized by advanced industry, technology, and a high level of cultural, economic, and political complexity.