Which of the following depends primarily on the growth rate of the money supply?
A)inflation and the natural rate of unemployment
B)inflation but not the natural rate of unemployment
C)the natural rate of unemployment but not inflation
D)neither inflation nor the natural rate of unemployment

Question

Quizplus · Accepted Answer

The growth rate of the money supply primarily affects inflation, as it influences the overall price level in the economy. The natural rate of unemployment is determined by factors such as labor market policies and demographics, not by the money supply.

Which of the Following Depends Primarily on the Growth Rate