Research indicates that the more independent the central bank, ...

[tiara099]

Research indicates that the more independent the central bank,
 
  A) the smaller the budget deficit.
  B) the higher the nominal interest rate.
  C) the lower the rate of inflation.
  D) the larger the time inconsistency problem in making policy.
  E) the greater the likelihood of a war of attrition over policy.

Question 2

Which of the following will cause an increase in the steady-state growth rate of output per worker?
 
  A) an increase in the saving rate
  B) a reduction in the population growth rate
  C) a reduction in the rate of depreciation
  D) a reduction in the saving rate
  E) none of the above

[meganlapinski]

Answer to Question 1

C

Answer to Question 2

E