D) both B and C
197) If two variables are inversely related, then as the value of one variable:
A) increases, the value of the other may either increase or decrease.
B) decreases, the value of the other decreases.
C) increases, the value of the other decreases.
D) increases, the value of the other increases.
198) If a positive relationship exists between x and y:
A) an increase in x will cause y to decrease.
B) a decrease in x will cause y to increase.
C) the relationship will graph as an upsloping line.
D) the vertical intercept must be positive.
199) Answer on the basis of the relationships shown in the below four figures. The amount of Y is directly related to the amount of X in:
A) both 1 and 3.
B) both 1 and 2.
C) 2 only.
D) l only.
200) Answer on the basis of the relationships shown in the below four figures. The amount of Y is inversely related to the amount of X in:
A) 2 only.
B) both 1 and 3.
C) 3 only.
D) 1 only.
201) Answer on the basis of the relationships shown in the below four figures. The amount of Y is unrelated to the amount of X in:
A) both 2 and 4.
B) 3 only.
C) 2 only.
D) 1
202) If price (P) and quantity (Q) are directly related, this means that:
A) a change in Q will alter P, but a change in P will not alter Q.
B) if P increases, Q will decrease.
C) if P increases, Q will also increase.
D) an increase in P will cause Q to change, but the direction in which Q changes cannot be predicted.
203) Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment so that investment would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate.