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For each of the following statements, indicate whether they are positive, normative, or both.

a. If the Federal Reserve raises interest rates, demand for housing is likely to fall.

  Both a normative and a positive statement
  Positive statement
  Normative statement
  Neither a normative nor a positive statement

b. The Federal Reserve should raise interest rates to keep inflation at an acceptably low level.

  Both a normative and a positive statement
  Normative statement
  Positive statement
  Neither a normative nor a positive statement

c. Stock prices are likely to fall over the next year as the economy slows.

  Neither a normative nor a positive statement
  Both a normative and a positive statement
  Normative statement
  Positive statement

d. A reduction in the capital gains tax (the tax on profits made in the stock market) would lead to a 10 to 20 percent increase in stock prices.

  Normative statement
  Neither a normative nor a positive statement
  Both a normative and a positive statement
  Positive statement

e. Congress should not reduce capital gains taxes without also providing tax breaks for lower-income people.

  Normative statement
  Positive statement
  Neither a normative nor a positive statement
  Both a normative and a positive statement

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Chika Ilonah
Chika IlonahLv10
28 Sep 2019
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