There tends to be ________ relationship between the growth rate of the money supply and the inflation rate.

Question

Quizplus · Accepted Answer

There is a direct relationship between the growth rate of the money supply and the inflation rate. As the money supply increases, it tends to lead to higher inflation rates, assuming other factors remain constant. This is because more money chasing the same amount of goods and services can lead to price increases.

There Tends to Be ________ Relationship Between the Growth Rate