If the federal reserve raises interest rates

Assignment Help Business Economics

Reference no: EM131240506

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

Reference no: EM131240506

Questions Cloud

What is the stores arc elasticity of demand for charcoal : The manager of the sell-rite drug store accidentally mismarked a shipment of 20 pound bags of charcoal at $5.38 instead of the regular price of $6.18. In a week, a total of 200 bags of charcoal was sold. The store normally sells an average of 160 bag..

Decreased income on the equilibrium price of rental homes : Use supply and demand analysis to show the effect of decreased income on the equilibrium price of rental homes that is find dp/dY.

All three cost equations and functions : Calculate the following for all three cost equations/functions: Compare the shapes of these curves and discuss their characteristics.

Market demand for good is described by the equation : Suppose the market demand for a good is described by the equation P = 60 - 0.5Q. If a change in market supply results in price decreasing from P0 = $40 to P1 = $30, then the resulting change in consumer surplus is:

If the federal reserve raises interest rates : If the Federal Reserve raises interest rates, demand for housing is likely to fall. The Federal Reserve should raise interest rates to keep inflation at an acceptably low level. A reduction in the capital gains tax (the tax on profits made in the sto..

Sufficiency of the writing : Newmark & Co. Real Estate, Inc., (the broker) contacted 2615 East 17 Street Realty, LLC, (the landlord) to lease certain real property on behalf of a client (the tenant). As is common in real estate transactions, the broker is paid a commission. What..

The history of international relations : According to the text, the history of international relations:

Demand for product is represented by equation : Assume that the demand for product X is represented by the following equation: QDX = 1000 – 10PX – 5PY + 2PZ Which of the products Y and Z is a substitute to X in consumption?

Defendants make in an effort to avoid defamation liability : Mann was the attorney for the Town of Rye, a New York community. He filed a defamation lawsuit against a newspaper that served the Rye area and against the writer of that newspaper's Town Crier column. Mann based his case on statements that appeared ..

User Account

All Pages