When we examine data from different countries,higher money growth has consistently been associated with:
A) deflation.
B) disinflation.
C) hyperinflation.
D) higher inflation.

Question

Quizplus · Accepted Answer

Higher money growth has consistently been associated with higher inflation in different countries. When central banks increase the money supply faster than the rate of economic growth, the excess money leads to a rise in aggregate demand, which can push up prices.

When We Examine Data from Different Countries,higher Money Growth Has