The money growth rate and the inflation rate

Name: The money growth rate and the inflation rate
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Question

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According to the quantity theory of money, there is a direct relationship between the growth rate of money and the inflation rate. The relationship tends to be tight in the long run since an increase in the supply of money will eventually lead to an increase in the price level. In the short run, the relationship may be noisy due to other factors that affect the economy.

The Money Growth Rate and the Inflation Rate