Which of the following statement is normative?
A. Higher taxes are needed to support education.
B. A large budget surplus is likely to lower interest rates.
C. Trade deficits frequently occur in conjunction with budget deficits.
D. The interest rate increases are the result of Federal Reserve actions to decrease the money supply.
Answer: A
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Andrea Schwatz has argued that the Great Depression was caused by
a. the fall in the stock of money. b. the fall in consumer durable spending. c. the fall in investment spending. d. the increase in nominal wages.
In order to maximize profits, a monopolist should produce where the average revenue is equal to marginal cost
a. True b. False Indicate whether the statement is true or false
Suppose that X and Y are substitute goods. If the price of good X increases, we can expect:
A. the demand for good X to shift to the left. B. an upward movement along the demand curve for good Y. C. the demand curve for good Y to shift to the right. D. a downward movement along the demand curve for good Y.
The long-run equilibrium for a firm in an information product industry exists at a point at which
A. marginal cost exceeds marginal revenue. B. average total cost is minimized. C. the demand curve is tangent to the average total cost curve. D. the demand curve crosses the marginal cost curve.