Everything else held constant, a decrease in the cost of production ________ aggregate ________

Positive and normative statements differ in that

A) positive statements can be tested, whereas normative statements cannot. B) normative statements can be tested, whereas positive statements cannot. C) normative statements depict "what is" and positive statements depict "what ought to be." D) normative statements never use the word "should."

Tobin's q theory suggests that monetary policy may affect investment spending through its impact on

A) stock prices. B) interest rates. C) bond prices. D) cash flow.