The time period known as the great inflation shows that the relationship between money supply growth and inflation seems to be _____ in countries with _____ inflation.
A) stronger; higher
B) stronger; lower
C) weaker; more variable
D) more inconsistent; stronger

Question

Quizplus · Accepted Answer

The great inflation period illustrates that in countries with higher inflation rates, the relationship between the growth of the money supply and inflation tends to be stronger. This is because rapid increases in the money supply can lead to higher inflation, a phenomenon well-documented in economic theory and historical instances.

The Time Period Known as the Great Inflation Shows That