If the slope of the relationship between savings and interest rates is 0.5, then
A) savings and interest rates have a negative relationship.
B) savings and interest rates have no relationship.
C) savings and interest rates have an inverse relationship.
D) savings and interest rates have a positive relationship.

Question

Quizplus · Accepted Answer

A slope of 0.5 indicates a positive relationship between savings and interest rates. As interest rates increase, savings also increase but at a slower rate than the increase in interest rates (0.5 times the increase in interest rates).

If the Slope of the Relationship Between Savings and Interest