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expeople1 [14]
3 years ago
15

Which of the following is a positive economic statement? Group of answer choices The standard of living in the United States sho

uld be higher. The U.S. government should not have bailed out U.S. auto manufacturers.
Business
1 answer:
Vesna [10]3 years ago
3 0

The U.S. government should not have bailed out U.S. auto manufacturers.

Explanation:

  • After the inflation period during the 1930, which continued almost for the next 30 years, America increased its standard of living - payment of higher taxes. With an income that was to be paid to government and to be used for their living, Americans had a tough time for almost 10 years to come out of the inflation they faced. Recession was also a part of this period during Hoover's presidency.
  • Later, when Roosevelt was elected, his new ideals changed the phase of America which did not let the government stick to basic infrastructure of America. In this period, people of America unanimously agreed for the bailout of auto manufacturers with which, they earned revenue for other sector's development.
  • In 2009, when the contract with General Motors was disintegrated, which was created during the time of World War II, the government of America did not want to take any risk/was not ready to face an economic hit. This eventually led for a bail out.
  • With this step, in that period of time, it is an economically positive statement.
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Since the relationship between price of a good and demand for it's substitute is positive, the demand for the substitute shall fall.

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