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Multiple Choice

A study of developed countries from 1962-1990 showed a strong negative correlation between the degree of central bank independence and the average inflation rate. Imagine a hypothetical country, 'Econland,' was part of this study. Econland had a very high degree of central bank independence but also experienced a moderately high average inflation rate, making it an outlier that does not fit the general trend. What is the most reasonable conclusion to draw from Econland's data?

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Updated 2025-08-10

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