Define what is meant by a positive or direct relationship between two variables and describe the line graph depicting such a relationship
Please provide the best answer for the statement.
A positive or direct relationship between two variables describes a situation where the two variables change in the same direction. If the first variable increases, the second variable increases; if the first decreases, the second decreases. An example would be individual income and spending. Generally, high spending is associated with high incomes and lower spending is associated with lower incomes. The line graph of a direct, positive relationship is up sloping from left to right.
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a. True b. False Indicate whether the statement is true or false
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's overall balance and value of the Bolivar (the Venezuelan currency)?
a. Overall balance would rise and value of the Bolivar would fall. b. Overall balance would not change and value of the Bolivar would fall. c. Overall balance would fall and value of the Bolivar would not change. d. Overall balance would fall and value of the Bolivar would fall. e. Overall balance would fall and value of the Bolivar would rise.