Which of the Following Statements Is a Normative Statement

question 180

Multiple Choice

Which of the following statements is a normative statement?

• A) Inflation has been at an all-time low this year.
• B) The minimum wage should be increased to $8.50 per hour.
• C) Unemployment this month has increased by less than 0.5 percentage point..
• D) Additional spending on education has not produced any rise in test scores.
• E) Pepsi is less expensive than Coke this week.

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Definitions:

Compounded Quarterly

The process whereby interest is calculated and added to the principal sum every quarter, leading to compound growth.

Personal Savings

The portion of an individual's income that is not spent on consumption and is set aside for future use.

Credit Union

A financial institution that is owned and operated by its members, focusing on providing credit at competitive rates as well as other financial services.

Maturity Value

For an interest-bearing note, it is the sum of the face value (principal) and the interest dollars: MV = P + I.