The ________ is the credibility of the central bank, the more rapid will be the ________ in inflation and the ________ will be the loss of output to achieve the inflation objective.

Question

Quizplus · Accepted Answer

The sentence correctly fills in with "greater; decline; lower," indicating that a more credible central bank can achieve a reduction in inflation more rapidly with a smaller loss of output.

The ________ Is the Credibility of the Central Bank, the More