Which of the following rates of growth in the money supply is likely to lead to the lowest level of inflation in the economy?

Question

Quizplus · Accepted Answer

A lower rate of growth in the money supply will lead to a lower level of inflation in the economy. When the money supply grows too quickly, there is too much money chasing too few goods, leading to inflation. Therefore, a growth rate of 1 percent per year is likely to lead to the lowest level of inflation in the economy.

Which of the Following Rates of Growth in the Money