If we look at the yearly average rate of M2 growth minus the yearly average rate of GDP growth in different decades for the United States, we see that
A)from 1960 to 2009, this difference was very close to the average inflation rate
B)from 1970 to 1979, this difference was slightly lower than the average inflation rate
C)from 1980 to 1989, this difference was very close to the average inflation rate
D)from 2000 to 2009, this difference was much higher than the average inflation rate
E)all of the above

Question

Quizplus · Accepted Answer

All of the above statements are true based on the data presented. The yearly average rate of M2 growth minus the yearly average rate of GDP growth was very close to the average inflation rate in 1960-2009, very close to the average inflation in 1980-1989, slightly lower than the average inflation rate in 1970-1979, and much higher than the average inflation rate in 2000-2009.

If We Look at the Yearly Average Rate of M2