Abstract
The study used three of the most important variables that constitute in their changes and movements asignificant impact on the level of economic activity. This study could specify the relationship between the interest rateand the inflation rate on the one hand, and explain the relationship between the interest rate and the money supply onthe other. Stability tests, via using unit-roots, showed that the variables were not stable at the general level, butrather they proved stable in the initial discrepancies. The tests could also show that the variables were jointlyintegrated; this led to the conclusion that there was a long-term equilibrant relationship among them, which meansthat the movements of the variables do not diverge considerably from one another, rather, they behave similarly.
