4. Which of the following statements are positive in nature and which are normative? a. A tax...

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4. Which of the following statements are positive in nature and which are normative?

a. A tax cut will raise interest rates.

b. A reduction in the payroll tax would primarily benefit poor and middle-class workers.

c. Payroll taxes are too high.

d. A cut in the payroll tax would improve the President’s popularity ratings.

e. Payroll taxes should not be cut unless capital gains taxes are also cut.

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Macroeconomics

ISBN: 9781292446127

11th Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore

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