-The data presented in Figure 8.1 confirm that the relationship between inflation and money growth is:
A)positive,as suggested by the Fisher equation.
B)positive,as suggested by money neutrality.
C)positive,as suggested by the quantity theory of money.
D)negative,as suggested by the quantity theory of money.
E)none of the above

Question

-The data presented in Figure 8.1 confirm that the relationship between inflation and money growth is:
A)positive,as suggested by the Fisher equation. 
B)positive,as suggested by money neutrality. 
C)positive,as suggested by the quantity theory of money. 
D)negative,as suggested by the quantity theory of money. 
E)none of the above

Quizplus · Accepted Answer

The quantity theory of money suggests a positive relationship between money growth and inflation, as an increase in money supply typically leads to higher prices.

-The Data Presented in Figure 8