Normative Statements Describe How the World Is, While Positive Statements

question 245

True/False

Normative statements describe how the world is, while positive statements prescribe how the world should be.

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Definitions:

Future Payments

Future payments refer to money that will be paid at a forthcoming date as a result of contractual obligations or anticipated transactions.

Interest Rate

The fraction of a loan that is assessed as interest for the borrower, often shown as a yearly percentage.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Present Value

The current financial valuation of a sum of money due in the future or stream of income, based on a specific interest rate.