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A positive relationship exists between two variables if one variable has "positively" no effect
on the other variable a reduction in one variable is associated with an Increase in the other
variable. a reduction in one variable is associated with a decrease in the other variable both
variables are inflation-distorted
Solution
c) A reduction in one variable is associated with decrease in other variable.
Two variables are positvely correlated when both of them move in same direction i.e. if with
decrease in X, y decreases and with increase in X, y increases then X and y are positvely
correlated. for example, age and height.

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