The novelty of Phillips' article was his finding of a ____ correlation between ____ and ____.
A)positive; unemployment; the interest rate
B)negative; inflation; the exchange rate
C)negative; unemployment; inflation
D)positive; the rate of growth of the money supply; inflation

Question

The novelty of Phillips' article was his finding of a ____ correlation between ____ and ____.
A)​positive; unemployment; the interest rate
B)​negative; inflation; the exchange rate
C)​negative; unemployment; inflation
D)​positive; the rate of growth of the money supply; inflation

Quizplus · Accepted Answer

Phillips' article found a negative correlation between unemployment and inflation. Option A is incorrect because Phillips' article did not mention anything about the interest rate, and the correlation between unemployment and the interest rate can either be positive or negative. Option B is incorrect because Phillips' article did not mention anything about the exchange rate, and the correlation between inflation and the exchange rate can also be positive or negative. Option D is incorrect because Phillips' article found a negative correlation between unemployment and inflation, not inflation and the rate of growth of the money supply.

The Novelty of Phillips' Article Was His Finding of a ____