Which of the Following Is a Normative Statement

question 98

Multiple Choice

Which of the following is a normative statement?

• A) Flood victims should pay for their own rebuilding.
• B) When the price of kiwi fruit increases, fewer people eat kiwi fruit.
• C) An increase in the supply of computers has caused computer prices to fall.
• D) Recessions lead to increases in the unemployment rate.
• E) Hurricanes strike mainly Florida and North Carolina.

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Definitions:

Interest Rate

The proportion of a total amount of money that is levied for borrowing it, commonly stated as a yearly percentage rate.

Loanable Funds

The money available for borrowing, which comes from savings and is demanded by borrowers for investment.

Usury Law

Legal regulations that cap the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.

Maximum Interest Rate

The highest rate of interest that can be charged on loans and credit products, often regulated by law to protect consumers from excessively high rates.