On the average in Canada, the inflation rate and the money growth rate minus real GDP growth rate
A)move in opposite directions.
B)are not related.
C)rise and fall together.
D)are always rising.
E)are always equal.

Question

Quizplus · Accepted Answer

In the long run, the inflation rate tends to rise and fall with the money growth rate minus the real GDP growth rate, as described by the quantity theory of money.

On the Average in Canada, the Inflation Rate and the Money