Which of the Following Is an Example of a Normative

question 13

Multiple Choice

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

• A)Interest rates rise when the government runs persistent budget deficits.
• B)Universal access to quality health care is the most important domestic policy issue of our time.
• C)Prices rise when the government prints too much money.
• D)Extending the time in which laid-off workers are eligible to receive government unemployment benefits has increased the unemployment rate.
• E)Lowering marginal income tax rates depresses consumer spending.

---

Definitions:

Conditional Acceptance

An agreement to accept an offer or proposal based on the fulfillment of certain conditions.

Inquiry

The act of seeking information by questioning or investigation.

Rejection

The refusal to accept, approve, or acknowledge something, especially referring to contractual or legal offers.

Counteroffer

A response to an original offer in a negotiation, where the terms of the first offer are modified.