Which Statement Is Normative

question 195

Multiple Choice

Which statement is normative?

• A) Borrowing to spend leads to crowding out.
• B) Governments should not borrow to finance spending.
• C) Borrowing to spend leads to crowding in.
• D) Higher taxes on spending encourage savings.
• E) Higher interest rates discourage investment.

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Definitions:

Compliance

Compliance refers to the act of adhering to laws, regulations, guidelines, and specifications relevant to business operations or activities.

Inconvenience

Disturbance or bother caused by a need for extra effort or adjustment.

Explanations

Statements or accounts that make a situation, concept, or action clear and understandable to another party.

Goodwill

The intangible asset that represents the value of a business's reputation and customer relationships, influencing its competitive advantage.