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

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Definitions:

Times Interest Earned Ratio

A financial metric used to measure the company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reflected in income statements as a cost of financing operations.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its interest obligations based on its operating income.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the price paid for using a lender's money or credit.