Which of the Following Is an Example of an Automatic

question 110

Multiple Choice

Which of the following is an example of an automatic fiscal policy action?

• A)an increase in spending on defense goods resulting from increased world tensions
• B)an increase in the tax rate resulting from a desire to shrink the budget deficit
• C)a decrease in the tax rate resulting from an effort to increase aggregate demand to combat a recession
• D)increased unemployment benefit payments resulting from higher unemployment
• E)None of the above answers are correct.

Grasp the impact of regulatory environments on market growth strategies.

Identify and evaluate the role of digital platforms and social media in marketing strategies.

Understand the significance of viewing customers with a lifetime value perspective and its implications for customer retention strategies.

Understand the concepts of the Boston Consulting Group's matrix, including "cash cows," "stars," "question marks," and "dogs."

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Definitions:

Protective Put

An options strategy where an investor purchases a put option for an existing stock position to limit potential losses.

Listed Put Option

A put option that is traded on an official exchange, giving the holder the right but not the obligation to sell a specific asset at a set price before the option expires.

Exercise Price

The price at which the holder of an options contract can buy or sell the underlying asset.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn diminishes its price.