"A reduction in the rate at which stock dividends are taxed will lead to greater investment in the stock market." This is an example of:
A)a positive economic statement.
B)a negative economic statement.
C)the fallacy of composition.
D)a normative economic statement.
E)confusing correlation with causation.

Question

Quizplus · Accepted Answer

This statement is stating a cause-and-effect relationship and does not include any value judgment or opinion, making it a positive economic statement. It is also not an example of the fallacy of composition or confusing correlation with causation.

"A Reduction in the Rate at Which Stock Dividends Are