Evidence from many countries during the last half of the twentieth century shows a _____ relationship between money supply growth and:
A) positive; inflation.
B) negative; inflation.
C) positive; GDP growth.
D) negative; GDP growth.

Question

Quizplus · Accepted Answer

A positive relationship between money supply growth and inflation has been widely observed and documented. As the money supply increases, it tends to lead to higher inflation rates.

Evidence from Many Countries During the Last Half of the Twentieth