The data show that money growth and inflation are
A) not correlated.
B) independent phenomena.
C) negatively correlated.
D) positively correlated.

Question

Quizplus · Accepted Answer

Money growth and inflation are positively correlated. This means that an increase in the money supply tends to lead to an increase in the overall level of prices in the economy. As more money enters circulation, it decreases the value of each individual unit of currency, resulting in higher prices for goods and services.

The Data Show That Money Growth and Inflation Are