Does the quantity theory correctly predict the effects of money growth on inflation?
What will be an ideal response?
The long-run historical and international evidence on the relationship between money growth and the inflation rate support the quantity theory. The data suggest a marked tendency for nations with high money growth rates to have high inflation rates.
Economics
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Assume goods X and Y are substitutes. An increase in the price of X would cause the demand for Y to increase
Indicate whether the statement is true or false
Economics
Why do free trade proponents dislike rules of origin in trade agreements?
A) It decreases the amount of international trade in the world. B) It increases the amount of international trade in the world. C) It decreases incentives for trade diversion. D) It increases incentives for trade deflection.
Economics