What Type of Correlation Occurs When One Variable Increases While

question 39

Multiple Choice

What type of correlation occurs when one variable increases while the other variable decreases?

• A) Positive correlation
• B) Negative correlation
• C) No correlation
• D) Multiple correlation

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Definitions:

Discount on Bonds Payable

The variance between a bond's nominal value and the lesser amount it is sold for in the market.

Long-Term Liabilities

Debts or obligations of a business that are due for repayment in a period longer than one year.

Installment Note

A loan that requires regular payments, or installments, over a period, which covers both principal and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as a yearly rate.