Which of the following statement is normative?
A. A large budget surplus is likely to lower interest rates.
B. Higher taxes are needed to support education.
C. The interest rate increases are the result of Federal Reserve actions to decrease the money supply.
D. Trade deficits frequently occur in conjunction with budget deficits.
Answer: B
You might also like to view...
"When the Fed buys securities from a bank, the quantity of money eventually decreases by a fraction of the initial change in the monetary base." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. An import quota of 35 units would
A) cause consumer surplus to fall by "g." B) cause social welfare to fall by $35. C) increase domestic producer surplus by "g." D) have no effect.