In an inverse relationship
A) one variable rises while the other falls.
B) both variables rise together.
C) both variables fall together.
D) the two variables have nothing to do with each other.
A
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What is the difference between inflation and deflation?
A) Inflation is a sustained decrease in the price level whereas deflation is a sustained increase in the price level. B) Inflation is a sustained increase in the price level whereas deflation is a sustained decrease in the price level. C) Inflation is a measure of relative prices whereas deflation is a sustained increase in the price level. D) None of the above.
Some universities now offer "tuition bonds." Parents can purchase a bond at the time their child is born. The bond is redeemable in 18 years for an amount of money equal to the cost of the university's tuition at that time
Which of the following would reduce the market price of these bonds? A) An increase in the rate of interest B) A decrease in the rate of interest C) The passage of legislation limiting increases in college tuition to the rate of inflation D) both A and C E) both B and C