There is a ________ association between inflation and the growth rate of money ________.

Name: There is a ________ association between inflation and the growth rate of money ________.
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Question

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There is a positive association between inflation and the growth rate of money supply because, according to the quantity theory of money, as the supply of money in an economy increases, the price level (inflation) tends to increase as well, assuming velocity of money and real output are constant.

There Is a ________ Association Between Inflation and the Growth