Evidence from Canada and other foreign countries indicates that ________.

Question

Quizplus · Accepted Answer

There is a well-documented positive relationship between the growth rate of the money supply and inflation over long periods, supporting the assertion that "inflation is always and everywhere a monetary phenomenon," as famously stated by Milton Friedman. This means that as the amount of money in an economy increases more rapidly than the economy's ability to produce goods and services, the price levels tend to rise, leading to inflation.

Evidence from Canada and Other Foreign Countries Indicates That ________