The equation stating that the rate of growth of the money supply equals the rate of inflation applies better to countries with ________ than to countries with ________.
A) zero inflation;hyperinflation
B) zero inflation;low or moderate inflation
C) low or moderate inflation;zero inflation
D) low or moderate inflation;high inflation
E) hyperinflation;low or moderate inflation

Question

Quizplus · Accepted Answer

In countries with hyperinflation, the rate of growth of the money supply is closely tied to the rate of inflation, as excessive money printing often leads to hyperinflation. In contrast, in countries with low or moderate inflation, other factors besides money supply growth can influence inflation rates.

The Equation Stating That the Rate of Growth of the Money