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..