Since the legal age to vote in the United States is 18, the legal drinking age in the United States should be lowered to 18. This statement is best described as
A. a positive statement.
B. a normative statement.
C. an implication of an efficient market.
D. a marginal statement.
Answer: B
You might also like to view...
If two risky assets, A and B, have negative correlation, then when A's yield increases
A) B's yield increases. B) B's yield decreases. C) B's yield can increase or decrease. D) There is not enough information to determine what B's yield will do.
Shirley can choose between peanut butter pretzels and caramel coated popcorn for her evening snack. According to economists, her _____ cost of consuming caramel coated popcorn would be the forgone peanut butter pretzels
a. internal b. opportunity c. average d. transaction e. social
In economics, abstraction from reality is necessary because of the complexity of the real world.
Answer the following statement true (T) or false (F)
Use the following table to answer the next question. The money supply and investment are in billions.Money Supply (billions of dollars)Interest RateInvestment (billions of dollars)$507%$100606110705120804130903140Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to decrease aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 5%, then the Federal Reserve should ________ bonds on the open market equal to ________.
A. buy, $4 billion B. sell, $4 billion C. sell, $2 billion D. buy, $2 billion