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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