Over the period 1973 through 1991, for the largest developed economies in the world, there has been
A)a positive correlation between the growth rate of money and the rate of inflation.
B)no correlation between money and the rate of inflation.
C)a negative correlation between the growth rate of money and the rate of inflation.
D)a negative correlation between the growth rate of money and the growth of velocity.
E)a positive correlation between the growth rate of money and real GDP.

Question

Quizplus · Accepted Answer

During this period, there was a positive correlation between the growth rate of money and the rate of inflation, as higher money supply growth typically led to higher inflation rates in developed economies.

Over the Period 1973 Through 1991, for the Largest Developed