Which of the following is a positive statement?

A) When the price of a good goes up, consumers buy less of it.
B) When the price of a good goes up, firms produce more of it.
C) When the Federal government sells bonds, interest rates rise and private business investment is reduced.
D) all of the above
E) none of the above

Positive Statement

A statement that can be tested and validated; it describes what is and not what should be.

Federal Government

The national government of a federal republic, which possesses certain powers at the national level while other powers are shared with or reserved for the states.

Interest Rates

The percentage charged on a loan or paid on savings, effectively the price of capital.