The unemployment rate is related to inflation by the Phillips curve, which is typically a negative sloped curve looking like a hyperbola -- inflation is very high at very low rates of unemployment, and it takes very high rates of unemployment to bring inflation down to zero. We compute a correlation coefficient between unemployment rates and inflation, and find it is negative 0.5. The true relation between the two is most probably:
A. exactly as reported by the correlation coefficient.
B. stronger than reported by the correlation coefficient, due to the non-linearity.
C. weaker than reported by the correlation coefficient, due to the great scatter of points around the line.