The proposition that inflation is the result of a high rate of money growth is
A)not supported by evidence from the German hyperinflation.
B)held only by sociologists and is no longer believed by economists.
C)supported by evidence from inflationary episodes throughout the world.
D)largely a political fabrication designed to make the Fed a scapegoat for poor fiscal policy.

Question

Quizplus · Accepted Answer

The proposition that inflation is the result of a high rate of money growth is supported by evidence from inflationary episodes throughout the world. While there may be exceptions to this relationship, such as the German hyperinflation, the overall pattern suggests that money growth is a key driver of inflation. This view is widely held among economists, despite occasional debates about the exact magnitude of the relationship or the role of other factors in shaping inflation.

The Proposition That Inflation Is the Result of a High