There is a strong link between changes in the money supply and inflation

Question

Quizplus · Accepted Answer

In the long run, there is a well-established relationship between changes in the money supply and inflation, as described by the quantity theory of money. This theory suggests that increasing the money supply faster than the growth of real output leads to inflation. In the short run, other factors can influence prices, making the relationship less clear.

There Is a Strong Link Between Changes in the Money