Which of the following is a normative economic statement?
A. The Federal budget deficit rose by 120 billion dollars
B. The unemployment rate is expected to fall next month
C. A trade surplus of 200 billion dollars should be our policy goal
D. The federal funds rate was reduced by half a percentage point
Answer: C
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Total producer surplus is the area below the equilibrium price and above the supply curve
a. True b. False Indicate whether the statement is true or false
Considering changes to the monetary base, are discount loans and federal funds borrowing equivalent? Explain.
What will be an ideal response?
For a monopoly, marginal revenue for all units greater than 1 is always:
A. more than price because of the quantity effect. B. more than price because of the price effect. C. less than price because of the quantity effect. D. less than price because of the price effect.
Based on this figure, if the krone exchange rate is fixed at $0.15 dollars per krone, then the krone is:
A. devalued. B. overvalued. C. revalued. D. undervalued.