When Two Variables Move in Opposite Directions,the Curve Relating Them

question 4

Multiple Choice

When two variables move in opposite directions,the curve relating them is

• A)upward sloping,and we say the variables are positively related.
• B)upward sloping,and we say the variables are negatively related.
• C)downward sloping,and we say the variables are positively related.
• D)downward sloping,and we say the variables are negatively related.

---

Definitions:

Interest Rates

The cost of borrowing money or the return on invested funds, typically expressed as a percentage of the principal.

Investment Spending

Expenditure on physical assets like machinery, buildings, or equipment, intended to create future benefits.

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of local currency.

Discount Rate

The interest rate charged by central banks to financial institutions for short-term loans, influencing monetary policy.