Evidence from the United States and other foreign countries indicates that

Question

Quizplus · Accepted Answer

There is a well-documented positive relationship between the growth rate of the money supply and inflation over the long term, supporting the assertion that "inflation is always and everywhere a monetary phenomenon," as famously stated by economist Milton Friedman. This means that as the amount of money in an economy increases more rapidly than the economy's ability to produce goods and services, prices rise, leading to inflation.

Evidence from the United States and Other Foreign Countries Indicates