Which of the Following Is a Normative Statement

question 3

Multiple Choice

Which of the following is a normative statement?

• A)When interest rates rise, the quantity of loanable funds demanded for new mortgages will decline.
• B)To achieve efficiency, governments should prevent monopoly in markets.
• C)Unemployment increases during a recession.
• D)When governments increase income tax rates, people work less.

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Definitions:

Sarbanes-Oxley Act

A federal law established in 2002 aimed at improving corporate governance and accountability, in response to financial scandals.

Securities Fraud

A type of serious financial fraud involving the manipulation of the securities markets, such as insider trading or misleading statements by companies.

Corporate Fraud

Illegal activities undertaken by an individual or company in a deceitful manner, aimed at financial gain.