For the Largest Developed Economies During the 1990s

Multiple Choice

For the largest developed economies during the 1990s,

A) the quantity equation did not work well in explaining variations in the rate of inflation in spite of the high rates of inflation that occurred in several of these countries.
B) the quantity equation worked well in explaining the variation in rates of inflation during this period.
C) economic growth was too high for the quantity equation to explain variations in the rate of inflation.
D) inflation was too varied for the quantity equation to be of any use.
E) there was not enough variation in the rate of inflation to test the quantity equation because inflation was low for all these countries.