If Two Variables Are Negatively Correlated,an Increase in One Variable

question 92

Multiple Choice

If two variables are negatively correlated,an increase in one variable ______.

• A)has a proportional increase in the other variable
• B)is associated with a decrease in the other variable
• C)is associated with an increase in the other variable
• D)has no effect on the other variable

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Definitions:

Government Deficit

The financial situation that occurs when a government's expenditures exceed its revenues within a specific time period, often leading to borrowing.

Jobless Recovery

A situation where the economy begins to recover from a recession, but the unemployment rate remains high or continues to increase.

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.

Stimulus Package

A collection of fiscal and monetary policies implemented by a government to stimulate a struggling economy.