Suppose That a Positive Relationship Exists Between Two Variables X

question 10

Multiple Choice

Suppose that a positive relationship exists between two variables x and y. This means that _____.

• A) a change in x will not cause a change in y
• B) as the value of x increases, the value of y decreases
• C) as the value of x increases, the value of y also increases
• D) both x and y change at the same rate

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Definitions:

Quantity of Output

The total amount of goods or services produced by a company, sector, or economy within a specific period.

Price Level

The overall average price of all goods and services currently made in the economy.

Classical Theory

A school of thought in economics that emphasizes free markets, competition, and the minimal involvement of government in the economy.

Supply of Savings

The total amount of savings that individuals and institutions are willing to provide at different interest rate levels.