The dynamic properties of inhibition and excitation of single units in the cochlear nucleus were studied using tones that were amplitude modulated either sinusoidally or with pseudorandom noise. The cross-correlation analysis of the unit discharge rate and the pseudorandom noise modulation of the stimuli showed that the dynamic properties determined from the responses to a single modulated excitatory tone (at CF), to a modulated excitatory tone together with an unmodulated inhibitory tone (above CF), and to a modulated inhibitory tone together with an an unmodulated excitatory tone were almost identical with regard to latency as well as to delay of the peak of the cross-covariance function. On the basis hereof it is inferred that the inhibition is either a cochlear phenomenon or that it is transmitted over pathways with identical temporal properties as those of the excitation. When 2 tones were presented simultaneously the modulation of the excitatory tone usually gave a higher degree of modulation of the discharge rate than did modulation of an inhibitory tone. Addition of an unmodulated inhibitory tone to a modulated tone at CF resulted in an extension of the range of intensities over which the maximal gain was relatively constant. In many units this range extended from about 10dB above the unit's threshold to 60 dB or more above.