Which of the following does the evidence gained from studying hyperinflation indicate?
A)The rate of inflation is not closely related to the rate at which the money supply changes.
B)Nominal interest rates are independent of the money supply.
C)Inflation rates parallel money supply growth rates.
D)Inflation rates move in the opposite direction as the growth rate in money supply.

Question

Quizplus · Accepted Answer

Evidence from hyperinflation studies shows that inflation rates tend to parallel money supply growth rates, indicating a strong relationship between the two.

Which of the Following Does the Evidence Gained from Studying