Which of the Following Is a Normative Statement

question 266

Multiple Choice

Which of the following is a normative statement?

• A) An increase in consumer income will lead to increased sales of beef.
• B) A decrease in the rate of unemployment will lead to upward pressure on consumer prices.
• C) An increase in the income tax will cause a greater reduction in savings than an increase in the sales tax.
• D) An economy with high unemployment can be worse off than an economy with high inflation.

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Definitions:

Net 30 Credit Policy

A payment term indicating that the payment for goods or services is due 30 days after the invoice date, often used in business-to-business transactions.

Monthly Interest Rate

The interest rate applied to a loan or investment for one month, often used to calculate the monthly interest payments or earnings.

Aging Schedule

A compilation of accounts receivable by the age of each account.