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A Scatter Diagram of Money Growth Rates and Inflation Rates

Question 2

Multiple Choice

A scatter diagram of money growth rates and inflation rates from 1982 to 2010 indicates


A) a clear direct relationship between money growth and inflation.
B) a clear indirect relationship between money growth and inflation.
C) no clear relationship between money growth rates and inflation.
D) that inflation is always and everywhere a monetary phenomenon.

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