Comovement between nominal and real variables
A) was once a strong regularity in Canadian data, but is no longer.
B) was not historically a strong regularity in Canada, but now it is.
C) cannot be explained.
D) was observed by Friedman and Schwartz after the 2008-2009 recession.
E) was observed by Friedman Schwartz in the historical Canadian data.

Question

Quizplus · Accepted Answer

Historically, there was a strong comovement between nominal and real variables in Canadian data, but this is no longer observed.

Comovement Between Nominal and Real Variables