Which of the Following Would Not Be Considered an Automatic

question 172

Multiple Choice

Which of the following would not be considered an automatic stabilizer?

• A)legislation increasing funding for job retraining passed during a recession
• B)decreasing unemployment insurance payments due to decreased jobless during an expansion
• C)rising income tax collections due to rising incomes during an expansion
• D)declining social housing payments due to more persons finding jobs during an expansion
• E)declining sales tax (HST or GST)revenue as the economy enters a recession

Identify the key differences between money markets and capital markets.

Understand the process and significance of indirect and direct transfers in financial markets.

Recognize the roles of institutional investors and their impact on financial markets.

Comprehend the process and requirements for a company going public, including the role of investment banks.

---

Definitions:

Planning Budget

A financial plan for the future which outlines projected income and expenditures during a specific period.

Net Operating Income

The profit generated from a company's regular business operations, excluding deductions for interest and taxes.

Flexible Budget

A flexible budget that varies according to activity or volume changes.

Direct Labor

The labor costs directly attributable to the production of goods or services, including wages for workers who are physically involved in creating a product.