What Did Milton Friedman Mean by Saying That "Inflation Is

question 58

Multiple Choice

What did Milton Friedman mean by saying that "inflation is always and everywhere a monetary phenomenon"?

• A) Inflation only affects those who hold money,as savings or in the form of investments.
• B) Inflation is due to cash transactions,not transactions based on credit.
• C) In any economy that uses money as a medium of exchange,there will always be some inflation.
• D) Inflation is about rising prices,not about rising productivity.
• E) Inflation is caused by an increase in the money supply relative to the quantity of goods and services.