Normative Analysis Is Concerned with "What Ought to Be," While

question 47

True/False

Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."

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Definitions:

Ordinary Interest

Interest calculated on the basis of a 360-day year, often used in banking for loans and savings.

360-Day Year

A financial approximation that simplifies the calculation of interest by assuming each month has 30 days, resulting in a 360-day year.

Total Amount

The complete sum of money or quantitative count, including all relevant parts or items added together.

Simple Interest

Interest earned or paid on the initial principal amount of an investment or loan.