Governments Eventually Tried to Establish a Credible Commitment to Low

question 18

True/False

Governments eventually tried to establish a credible commitment to low inflation by creating independent central banks that tied their hands.

---

Definitions:

Disposable Income

The financial capacity of households to spend and save, net of income taxes.

Savings

The part of earnings not used for purchasing goods or services, typically saved for investing or future needs.

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.

Disposable Income

Households' available economic resources for spending and saving post-tax.