Between 1960 and 1990, the Rate of Inflation and the Growth

question 22

Multiple Choice

Between 1960 and 1990, the rate of inflation and the growth of M2 in the U.S.moved roughly together

• A)and an equally close relation existed between the inflation rate and the growth of M1
• B)despite the fact that the velocity of M2 varied greatly during this period
• C)and it is therefore safe to assume that the income velocity of money will always be constant in the long run
• D)and a similar relationship can be observed in most other countries as well
• E)but in the late 1990s, the link between inflation and M2 started to break down

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Definitions:

Faith and Trust

The belief in the reliability, truth, or strength of someone or something without requiring proof.

No Liability

A legal status indicating that an individual or entity is not responsible for certain actions or debts.

Domestic Corporation

A corporation created by or organized under the laws of the state where it is operating.

Principal Office

The main executive office of a business where key administrative and leadership activities are conducted.