Over the Long Run and Across Countries,there Is Evidence of ________

question 72

Multiple Choice

Over the long run and across countries,there is evidence of ________ between the growth rate of the money supply and the inflation rate.

• A) no relationship
• B) a weak link
• C) a strong link
• D) a negative relationship

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Definitions:

Capital Flight

Refers to the rapid movement of large sums of money or capital out of a country, typically to safer or more profitable markets.

Domestic Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling within a country.

Demographic Transition

A theory describing the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Per Capita Incomes

The average income earned per person in a given area or country.