Select the normative statement a. If the price of a product decreases, people’s willingness to buy...

Select the normative statement

a. If the price of a product decreases, people’s willingness to buy that product will increase.

b. Reducing tax rates on the wealthy would benefit the nation.

c. If the national saving rate were to increase, so would the rate of economic growth.

d. The elimination of trade restrictions would increase an economy’s standard of living.

Solutions

Expert Solution

Normative statements are those statements which are based on what should be ought to be in order to achieve a particular outcome of interest, therefore, the right answer is option B, that is, reducing tax rates on the valley would benefit the nation. Here policymakers are discussing the possibility of reducing the tax rates and how it can benefit the nation but we can see that it has not implemented yet therefore, option B is the right answer

Rahul Sunny answered 2 years ago

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