If We Look at the Yearly Average Rate of M2

question 4

Multiple Choice

If we look at the yearly average rate of M2 growth minus the yearly average rate of GDP growth in different decades for the United States, we see that

• A)from 1960 to 2009, this difference was very close to the average inflation rate
• B)from 1970 to 1979, this difference was slightly lower than the average inflation rate
• C)from 1980 to 1989, this difference was very close to the average inflation rate
• D)from 2000 to 2009, this difference was much higher than the average inflation rate
• E)all of the above

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Definitions:

Statistical Technique

A method or formula derived from statistical science used to analyze, interpret, and collect data.

Samples

Small portions or quantities intended to show what the whole is like.

Observed Characteristics

Traits or features that have been recorded or noted through observation or study.

Default

The failure to meet the legal obligations or conditions of a loan, such as not making payments on time.