Which of the Following Statements Is Normative

question 111

Multiple Choice

Which of the following statements is normative?

• A)When the Federal Reserve increases the money supply, interest rates decrease.
• B)A large budget surplus is likely to lower interest rates.
• C)Large budget deficits should be avoided.
• D)High taxes tend to decrease saving.

---

Definitions:

Channel And Medium

The means and pathways through which messages and information are communicated from sender to receiver.

Capability

The ability or capacity to achieve something, often related to skills, resources, or technology.

Quantity Of Information

The amount of data or details contained in a message or document.

Validity

refers to the extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.