Empirical Evidence Suggests Which of the Following About Central Bank

question 20

Multiple Choice

Empirical evidence suggests which of the following about central bank independence and inflation rates?

• A) More independent central banks are associated with lower rates of inflation.
• B) More independent central banks are associated with constant rates of inflation.
• C) More independent central banks are associated with higher rates of inflation.
• D) There is no observable relationship between inflation rates and central bank independence.

---

Definitions:

Social Modelling

The process of learning behaviors, attitudes, or emotional reactions through observing and imitating others.

Lemming Effect

Refers to a phenomenon where individuals in a group follow each other's actions blindly, often disregarding their own interests or the potential dangers.

Allport's Conditions

Criteria identified by psychologist Gordon Allport that facilitate positive contact between groups, including equal status, common goals, and institutional support.

Deindividuation

A psychological state of decreased self-evaluation and decreased evaluation apprehension causing antinormative and disinhibited behavior.