Question: What is the main problem with having a central bank that is not independent of the rest of the government? A. Less independent central banks
What is the main problem with having a central bank that is not independent of the rest of the government?
A. Less independent central banks tend to lead to lower interest rates.
B. Less independent central banks tend to lead to higher unemployment.
C. Research studies have shown that the most independent central banks had the highest average rates of inflation during the 1970s and 1980s.
D. Less independent central banks tend to lead to higher inflation. An independent central bank can more freely focus on keeping inflation low.
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