Low rates of inflation are generally associated with
A) low rates of government spending.
B) small or nonexistent government budget deficits.
C) low rates of productivity growth.
D) low rates of growth of the quantity of money.

Question

Quizplus · Accepted Answer

Low rates of inflation are generally associated with low rates of growth of the quantity of money. When the money supply grows more slowly, the value of money increases, which leads to lower prices for goods and services.

Low Rates of Inflation Are Generally Associated with