"The Federal Reserve should raise interest rates in order to keep inflation at an acceptably low level" is a ________ statement about ________ policy.

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. Normative statement comments on the desirability of an action, and often includes terms such as should. Monetary policy is the control of the money supply and thereby interest rates.

"The Federal Reserve Should Raise Interest Rates in Order to Keep