Determine Whether Each of the Following Is a Positive or Normative

question 16

Short Answer

Determine whether each of the following is a positive or normative statement.
a.The Bank of Canada should lower interest rates to increase economic growth,because we're in a recession.
b.Higher government budget deficits cause higher interest rates.
c.The trade deficit should decline because of the fall in the value of the dollar.
d.Because of our high inflation rate,we must reduce the rate of money growth.
e.A generous unemployment insurance system is a primary cause of high unemployment in Europe.
f.Increased average labour productivity in a country should lead to faster growth.
g.Government budget deficits are too high in Canada and should be reduced.

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Definitions:

Transfer Warranties

Guarantees provided by a seller to a buyer regarding the condition and legality of the item or property being transferred.

Endorsement

The act of signing one's name on the back of a financial instrument, such as a check, thereby transferring rights or title to another party.

Payee

The party that receives the benefit of an order (check, etc.).

Authenticate

The process of verifying the authenticity of a document, object, or digital file to confirm its genuineness.