Looking at historical evidence from 1990 to 2005 for the United States and other countries, which of the following are true?
I. There is a correlation between the growth rate of the quantity theory of money and the growth rate of real GDP.
II. There is a correlation between the growth rate of the quantity theory of money and the inflation rate.
A) Only II is true.
B) Only I is true.
C) Both I and II are true.
D) Neither I or II is true.

Question

Quizplus · Accepted Answer

The quantity theory of money primarily suggests a relationship between money supply and inflation, not directly with real GDP growth. Historical evidence often shows a correlation between money supply growth and inflation.

Looking at Historical Evidence from 1990 to 2005 for the United