Which of the Following Is a Normative Economic Statement

question 133

Multiple Choice

Which of the following is a normative economic statement?

• A)The U.S.rate of unemployment was lower in 2004 than it was in 1994.
• B)Savings accounts earn interest,whereas checking accounts do not.
• C)Congress must recognize that the growing national debt is the most serious problem that the country faces.
• D)The unemployment rate increases when the percentage of the labor force without jobs increases.
• E)The unemployment rate among teenagers is higher than the rate among adults.

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Definitions:

Deposits

Funds placed into an account at a financial institution for safekeeping and potential interest earnings.

Investment Securities

Financial instruments purchased with the aim of generating income or appreciating in value, such as stocks, bonds, and mutual funds.

Raise Capital

The process by which a company or organization obtains money for growing operations, typically through the issuance of stocks or bonds.

Investment Bankers

Professionals who work for financial institutions, facilitating mergers, acquisitions, and issuing of securities for corporations and governments.