The inflation rate and the growth in the money supply are

Question

Quizplus · Accepted Answer

The inflation rate and growth in money supply are usually directly related, meaning that as the money supply increases, inflation tends to increase as well. This is because more money in the economy means there is more demand for goods and services, which can lead to higher prices. Conversely, when the money supply decreases, there is less demand for goods and services, which can lead to lower prices and deflation.

The Inflation Rate and the Growth in the Money Supply