A cross-country analysis of money growth shows that:

Question

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The cross-country analysis of money growth suggests that lower inflation rates are associated with lower growth rates in the money supply. This is because higher inflation rates often lead to higher money growth in order to accommodate the increased demand for liquidity. Conversely, lower inflation rates do not require as much money growth to satisfy liquidity demands. Therefore, countries with lower inflation rates tend to experience lower growth rates in the money supply.

A Cross-Country Analysis of Money Growth Shows That