If there is a direct relationship between two variables
A) the graph of the relationship will be upward-sloping.
B) the graph of the relationship will be downward-sloping.
C) the slope of the line (or the slope of a tangent line to the curve) will be negative.
D) Both answers A and C are correct.
A
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Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted, even when economic inefficiency results. In economics this is referred to as the
a. long-term effect. b. political-fallacy effect. c. shortsightedness effect. d. inefficiency effect.
Which of the following statements best describes the relationship between risk and the average expected return of investments?
A. Less risky assets will have similar average expected rates of return to more risky assets B. Less risky assets will have higher average expected rates of return than more risky assets C. More risky assets will have higher average expected rates of return than less risky assets D. More risky assets will have lower average expected rates of return than less risky assets