If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy?

Which of the following is true regarding a normative statement?

i. It uses the ceteris paribus assumption. ii. It is a value judgment. iii. It accounts for opportunity costs. A) i and iii B) ii and iii C) i only D) ii only E) i, ii, and iii

If a consumer borrows at an interest rate greater than the interest rate at which he or she can lend, then

A) banks cannot make a profit. B) the budget constraint has a kink at the endowment point. C) the consumer must be a lender. D) this makes no difference for consumer behavior.