Economics Question
3. The money growth rate :, the inflation rate B, and the real money supply M/P for a few years in
Bolivia were:
Year : B M/P
1979 22% 20% 9533
1980 28% 47% 8260
1981 23% 32% 7671
1982 103% 124% 69732
1983 239% 276% 6295
We see immediately that
(a) : and B have upward trends over the five year period
(b) M/P has a downward trend
(c) B has a general tendency to be larger than :
Explain the economic relationships that cause the observed behavior among these :, B, and M/P.
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