"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of
A) a positive statement.
B) a normative statement.
C) a microeconomic statement.
D) an economic model.

Question

Quizplus · Accepted Answer

A positive statement is a factual assertion about how the world actually works, and the given statement makes a factual claim about the consequences of a policy action, which can be tested and validated through evidence.

"As Part of the Financial Crisis Bailout Plan in 2009