If money growth and inflation were strongly correlated in international data, the economist would become more ___________ in a theory linking the two.
A) doubtful.
B) confident.
C) anxious.
D) concerned.

Question

Quizplus · Accepted Answer

If there is a strong correlation between money growth and inflation in international data, the economist would become more confident in a theory linking the two variables because the data would support the theory. A strong correlation would imply that changes in money growth have a direct impact on inflation, providing evidence of a causal relationship between the two variables.

If Money Growth and Inflation Were Strongly Correlated in International