Countries with Greater Central-Bank Independence Can Achieve Lower Rates of Inflation

question 47

Multiple Choice

Countries with greater central-bank independence can achieve lower rates of inflation:

• A) at the cost of higher levels of unemployment.
• B) at the cost of slower growth rates of real GDP.
• C) at the cost of greater volatility of real GDP.
• D) with no apparent real economic costs.

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Definitions:

Hyperphagia

An abnormally high appetite or excessive eating, which can be caused by various conditions or disorders.

Major Affective Disorder

A category of mood disorders characterized by significant emotional disturbances, which can include either periods of intense sadness (depression) or excessive happiness (mania).

Anorexia Nervosa

A psychiatric disorder characterized by an intense fear of gaining weight and a distorted body image, leading to severe restriction of food intake and weight loss.

Bulimia

An eating disorder characterized by episodes of binge eating followed by behaviors to avoid weight gain, such as self-induced vomiting, excessive exercise, or the use of laxatives.