Plot the following table on a graph showing average money growth rates on the horizontal axis and a inflation rates on the vertical axis (data is for the period 2002-2012, from the International Monetary International Financial Statistics). Inflation is measured using the CPI, and the monetary aggregate consideration is M2. Inflation rate Argentina Bolivia 10.88% 3.59% Chile 3.20% Mexico 4.36%

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Chapter1: Making Economics Decisions
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2.
Plot the following table on a graph showing average money growth rates on the horizontal axis and average
inflation rates on the vertical axis (data is for the period 2002-2012, from the International Monetary Fund.
International Financial Statistics). Inflation is measured using the CPI, and the monetary aggregate under
consideration is M2.
Inflation rate
Money growth
rate
Argentina Bolivia
10.88%
27.92%
3.59%
34.12%
Chile
3.20%
12.76%
Do these data support the quantity theory of money?
Mexico
4.36%
1
11.44%
Transcribed Image Text:2. Plot the following table on a graph showing average money growth rates on the horizontal axis and average inflation rates on the vertical axis (data is for the period 2002-2012, from the International Monetary Fund. International Financial Statistics). Inflation is measured using the CPI, and the monetary aggregate under consideration is M2. Inflation rate Money growth rate Argentina Bolivia 10.88% 27.92% 3.59% 34.12% Chile 3.20% 12.76% Do these data support the quantity theory of money? Mexico 4.36% 1 11.44%
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