International data supports the quantity theory of money conclusion that high money growth rates are associated with inflation.

Question

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The quantity theory of money suggests that there is a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. International data generally supports this theory, showing that countries with higher rates of money growth often experience higher inflation rates. This is because an increase in the money supply, without a corresponding increase in goods and services, leads to higher prices.

International Data Supports the Quantity Theory of Money Conclusion That