Which of the following is FALSE?
A)in the short run, the rate of monetary growth and the rate of inflation always follow the same pattern
B)in the short run, a change in the growth rate of money can affect the level of output
C)in the short run, factors other than an increase in the growth rate of money can cause inflation to increase
D)in the long run, a sustained increase in the growth rate of money will cause the inflation rate to increase
E)in the long run, a sustained increase in the growth rate of money will have no effect on the level of output

Question

Quizplus · Accepted Answer

In the short run, the rate of monetary growth and the rate of inflation may not always follow the same pattern due to various factors such as changes in productivity or supply shocks.

Which of the Following Is FALSE