Research suggests that

Question

Multiple Choice
the more independent the central bank, the lower the average annual growth of real GDP.
the more independent the central bank, the higher the average annual growth of real GDP.
there is no relationship between the degree of independence of a country's central bank and the growth rate of its real GDP.
the less independent the central bank, the higher the average annual rate of inflation.

Answer 1

The correct choice is:

the less independent the central bank, the higher the average annual rate of inflation.

Research indicates that central bank independence typically leads to better economic outcomes, including lower inflation. An independent central bank is more effective in maintaining price stability, which can contribute positively to economic growth, but the statement about lower average annual growth of real GDP isn't usually supported by the evidence.