A Positive Relationship Exists Between Two Variables If

question 85

Multiple Choice

A positive relationship exists between two variables if

• A) one variable has "positively" no effect on the other variable.
• B) a reduction in one variable is associated with an increase in the other variable.
• C) a reduction in one variable is associated with a decrease in the other variable.
• D) both variables are inflation-distorted.

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Definitions:

Preferred Stock

A class of stock with preferential rights over common stock.

Current Ratio

A financial metric that assesses a firm's capacity to meet its short-term liabilities, which are due within a year, by dividing its current assets by its current liabilities.

Financial Information

Data regarding the financial status or performance of an entity, including income statements, balance sheets, and cash flow statements.

Balance Sheet

A financial delineation of a business's assets, owing, and the portion of equity held by its shareholders, at a distinct point.