What does research suggest as to the relationship between the independence of the central bank and inflation? What is the rationale for this relationship?
What will be an ideal response?
Research indicates that the more independent a central bank is from the rest of the government, the lower the country's inflation rate will be. The reason is that an independent central bank is better able to resist political pressures to increase the money supply.
Economics
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In the expression Pr(Y = 1 = ?(?0 + ?1X),
A) (?0 + ?1X) plays the role of z in the cumulative standard normal distribution function. B) ?1 cannot be negative since probabilities have to lie between 0 and 1. C) ?0 cannot be negative since probabilities have to lie between 0 and 1. D) min (?0 + ?1X) > 0 since probabilities have to lie between 0 and 1.
Economics
When demand is elastic, an increase in price will lead to an increase in total revenue
a. True b. False
Economics