All of the Following Are Examples of Normative Statements EXCEPT

question 67

Multiple Choice

All of the following are examples of normative statements EXCEPT:

• A)High rates of economic growth are preferable to low rates.
• B)Output per person should increase at an average annual rate of 5 percent.
• C)Low unemployment is more desirable than low inflation.
• D)Output per person typically grows more slowly than output per worker.

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Definitions:

Black-Scholes Model

A mathematical model used for pricing European-style options, estimating the variation over time of financial instruments.

Call Option

A deal in the financial industry that bestows upon the buyer the latitude, but exempts them from the necessity, to acquire stocks, bonds, commodities, or other assets at a price fixed in advance, within a predetermined time frame.

Warrants

Financial instruments that give the holder the right, but not the obligation, to buy a company's stock at a specific price before a specified date.

Publicly Traded Bonds

Bonds issued by companies or governments that are available for purchase and sale on public stock exchanges.