Which of the Following Correlation Coefficients Reflects the Strongest Relationship

question 25

Multiple Choice

Which of the following correlation coefficients reflects the strongest relationship between two variables?

• A)+)41
• B)-)55
• C)+)50
• D)- .30

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Definitions:

Loanable Funds

The market where savers supply funds to borrowers, typically through financial intermediaries.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a given price, during a certain time period.

Pension Program

A financial arrangement designed to provide individuals with an income when they are no longer earning a regular income from employment.

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.