When Milton Friedman Said That "Inflation Is Always and Everywhere

question 8

Multiple Choice

When Milton Friedman said that "inflation is always and everywhere a monetary phenomenon," he was referring to

• A) one-shot inflation.
• B) continued inflation.
• C) a and b
• D) neither a nor b

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Definitions:

Money Supply Curve

A graphical representation of the relationship between the money supply and the interest rate in an economy.

Excess Supply

A situation where the quantity of a good or service supplied is more than the quantity demanded at the current price.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets over a specific period of time.

Gross Domestic Product

The monetary value of all finished goods and services made within a country during a specific period.