Which of the Following Is an Example of a Normative

question 43

Multiple Choice

Which of the following is an example of a normative economic statement?

• A) An increase in government expenditure will lead to an increase in well-being.
• B) An increase in the money supply will lead to an increase in the inflation rate.
• C) An increase in income is accompanied by an increase in savings.
• D) An increase in income is accompanied by an increase in consumption.

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Definitions:

Independent

Not influenced by or dependent on something else; having the freedom to act, operate, or decide without being controlled by others.

Dependent

In statistical terms, a variable whose value is influenced or determined by another variable; in general, relying on someone or something else for support or existence.

Deductive Step

A logical step in which a conclusion follows necessarily from the given premises, ensuring that if the premises are true, the conclusion must also be true.

Illicit Major

In syllogistic logic, an error occurring when the major term is undistributed in the premise but distributed in the conclusion.