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Sec. 9]
THE CAUSES
31
Fig. 9. Money and the Price Level
Showing a correspondence between the quantity of money and the level of prices. Since the middle of 1915, when the quantity of money in the United States began to be greatly affected by the war, the correspondence has been close, changes in the price level seeming usually to follow changes in the quantity of money one to three months later. (The apparent discrepancy between the upper and lower figures at the right is due to a change in the official method of computation adopted by the Federal Reserve Board.)
