Identifying Normative Statements in Economics

Steps:

• Define positive statements as objective facts verifiable by evidence; normative statements as subjective opinions or predictions involving judgment.
• Examine each option for factual reporting versus evaluative expectation.
• Classify A, B, and C as positive due to their basis in observable data.
• Identify D as normative for its predictive assessment of impact.

Why D is correct:

• Normative statements express opinions on effects or desirability, as defined in economic analysis; D judges the rise in rates to have only a small impact, relying on expectation rather than fact.

Why the others are wrong:

• A reports a verifiable change in inflation rates, a positive statement.
• B compares actual inflation data between countries, a factual positive statement.
• C states a specific policy action with dates, an objective positive statement.

Final answer: D