U.S.and international data from 1960 - 2011 confirm that
A)changes the rate of inflation always correspond closely to changes in the growth rate of money
B)the growth rate of money is equal to the inflation rate
C)the average rate of money growth is about the same as the average rate of GDP growth
D)higher sustained money growth rates are always associated with higher inflation rates
E)the growth rate of money is about equal to the GDP growth rate plus the rate of inflation

Question

Quizplus · Accepted Answer

The data confirms that higher sustained money growth rates are always associated with higher inflation rates. This indicates that there is a positive relationship between the growth rate of money and inflation. None of the other options accurately reflect the relationship between money growth and inflation based on the given data.

USAnd International Data from 1960 - 2011 Confirm That