Over the long run if central banks want to avoid high rates of inflation, they need to be concerned with the:

Question

Quizplus · Accepted Answer

The money growth rate is the rate at which the money supply is increasing. If the central bank allows the money supply to grow too quickly, it can lead to higher rates of inflation over the long run. Therefore, central banks need to be concerned with controlling the money growth rate to avoid high inflation rates. While the other options may indirectly affect inflation, they are not as directly related as the money growth rate.

Over the Long Run If Central Banks Want to Avoid