International evidence suggests that
A)contrary to theory,there is little relationship between inflation and money supply growth
B)the countries with the most independent central banks are the countries with the lowest inflation rates
C)contrary to theory,there is little relationship between central bank independence and price stability
D)the countries with the least independent central banks are the countries with the lowest inflation rates
E)the most independent central banks are in Spain and Italy

Question

Quizplus · Accepted Answer

This is the most accurate statement based on international evidence. Studies have shown that countries with more independent central banks tend to have lower inflation rates than those with less independent central banks. However, it is important to note that this relationship is not a guarantee and there are other factors that can affect inflation rates as well.

International Evidence Suggests That