When income increases, expenditure on imports tend to increase. Which of the following best describes this relationship?
A)A positive relationship.
B)A negative relationship.
C)An inverse relationship.
D)None of these choices are correct.

Question

Quizplus · Accepted Answer

This is because as income increases, people have more disposable income that they can use to purchase more goods and services, including imports. Therefore, the increase in income is positively correlated with an increase in expenditure on imports.

When Income Increases, Expenditure on Imports Tend to Increase