The data show that money growth and inflation are
A) positively correlated.
B) independent phenomena.
C) negatively correlated.
D) not correlated.

Question

Quizplus · Accepted Answer

Money growth and inflation are positively correlated, meaning that as the money supply increases, so does the general price level. This relationship is explained by the quantity theory of money, which suggests that there is a direct relationship between money supply and inflation.

The Data Show That Money Growth and Inflation Are