If “inflation is always and everywhere a monetary phenomenon,” the which statement is most true?

If “inflation is always and everywhere a monetary phenomenon,” the which statement is most true? (a) excessive money supply growth likely is THE cause of inflation; (b) inflation has little to do with the spread between growth rates of actual and potential GDP; (c) excessive money supply growth serves as the “fuel” that keeps the price level rising; (d) the best solution to excess inflation is to rapidly and persistently increase growth in the M-1 money supply.

× How can I help you?