Which Statement Best Reflects a Normative Description

question 27

Multiple Choice

Which statement best reflects a normative description?

• A)The United States has higher taxes than most European democracies.
• B)The United States has lower taxes than most European democracies.
• C)The United States has a federal income tax.
• D)The United States has tax rates that are too low.

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Definitions:

Stable Inflation

A situation in which the rate of inflation is low and changes very slowly over time.

Marginal Tax Rate

The amount by which taxes increase from an additional dollar of income.

Interest Income

Earnings received from investments in financial assets like savings accounts, certificates of deposit, or bonds, typically expressed as a percentage of the principal.

Aggregate Demand

The aggregate need for every product and service in an economy, measured at a specific overall price level during a certain time frame.