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