The Data for the Last Twenty- Five Years Shows an Almost

question 9

Multiple Choice

The data for the last twenty- five years shows an almost perfect relationship between money growth and inflation when is used as the measure of the money supply.

• A) M3
• B) a currency equivalent index
• C) M1
• D) either M1 or M3
• E) None of the above.

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Definitions:

Simple Interest Rate

The percentage of interest calculated only on the principal amount, not on accrued interest.

Payments

Transfers of money from one party to another to fulfill a financial obligation.

Discounted

A reduction applied to a price or rate, lowering the original amount.

Simple Interest Rate

The percentage of the principal amount that is paid as interest for a specified period.