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