Which of the following statement is normative?
A)The interest rate increases are the result of Federal Reserve actions to decrease the money supply.
B)A large budget surplus is likely to lower interest rates.
C)Higher taxes are needed to support education.
D)Trade deficits frequently occur in conjunction with budget deficits.

Question

Quizplus · Accepted Answer

Normative analysis addresses the question of whether a policy should be used, and inevitably involves the values of the person doing the analysis. The appropriateness of higher taxes to support education will depend on the values of the person doing the analysis.

Which of the Following Statement Is Normative