Which of the Following Correlation Coefficients Represents the Strongest Relationship

question 86

Multiple Choice

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

• A)-.75
• B)+.60
• C).00
• D)+.30

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Definitions:

Fiscal Policy

Government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth.

Increased Taxes

A financial situation where a government raises the rates of taxes, affecting individuals or businesses.

Reduced Government Spending

A situation where the government decreases its expenditure in various sectors to manage its budget, often affecting public services and investments.

Expansionary Monetary Policy

Government actions to increase the money supply in an effort to cut the cost of borrowing, which encourages business decision makers to make new investments, in turn stimulating employment and economic growth.