Which of the Following Statements Is Positive

question 87

Multiple Choice

Which of the following statements is positive?

• A)When the Federal Reserve increases the money supply, interest rates decrease.
• B)Large budget deficits should be avoided.
• C)Higher taxes are needed to support education.
• D)A tax cut that benefits low-income households is acceptable.

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Definitions:

Women Laugh

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An economic principle that assumes individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

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A strategy aimed at obtaining the highest possible gain or advantage from a particular action or situation.