Which of the Following Is an Example of a Normative

question 45

Multiple Choice

Which of the following is an example of a normative - as opposed to a positive - statement?

• A)The discount rate is the interest rate the Federal Reserve charges banks to borrow funds.
• B)The US income tax rate increases with the amount of income earned.
• C)The government should increase the tax on gasoline.
• D)The US unemployment rate increased to 10 percent in 2009.