Looking at historical evidence 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.

Question

Quizplus · Accepted Answer

The quantity theory of money primarily suggests a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. Therefore, it is more directly correlated with the inflation rate (II) rather than the growth rate of real GDP (I).

Looking at Historical Evidence for the United States and Other