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:

Social Implications

The effects or consequences that an action or policy may have on society or a specific segment of the community.

Political Implications

The potential effects or consequences of actions, policies, or decisions on the political landscape.

Provider Credibility

The perceived trustworthiness and expertise of a service provider, which can affect the willingness of individuals to engage with and accept the services offered.

Cultural Perspective

The viewpoint that reflects beliefs, values, and practices stemming from one's cultural background.