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jolli1 [7]
3 years ago
9

Which policy tools are considered automatic stabilizers?

Business
1 answer:
V125BC [204]3 years ago
6 0

In the fiscal policies of governments, automatic stabilizers are meant to correct and stabilize the fluctuations that arise within the economy of nations. The policy tools that are considered automatic stabilizers are;

  • A progressive income tax structure
  • Government unemployment benefits

At times, the economy of a nation might experience shocks and destabilizations. These policy tools listed above are meant to generate taxes from the citizens that would cushion the effects of these shocks.

They help to increase the flow of money in the economy when it is passing through difficulties like recessions.

Learn more here:

brainly.com/question/24276941

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The spending-income multiplier
aliina [53]

Answer: magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation

Explanation:

The spending multiplier is the ratio of the change in GDP to the change in the autonomous expenditure.

The spending income multiplier magnifies spending-income changes into greater changes in aggregate demand, causing demand-pull inflation. In a situation whereby there's a reduction in the investment spending, there'll be a recession.

4 0
3 years ago
Imagine you inherited $50,000, and you want to invest it to meet two financial goals: (a) to save for your wedding you plan to h
AleksAgata [21]

Answer:

<u>Solution and Explanation:</u>

<u>Evaluation for investment decisions </u>

  • Investing for Wedding
  • Investing for Retirement
  • CD – 24 months .
  • Energy sector mutual fund
  • General electric bond – 18 months
  • Johnson & Johnson stock
  • Money market shares
  • General electric bond – 2.5 years
  • Saving account
  • Dow ETF
  • Short term junk Bonds
  • Treasury Note – 60 months

CD – 24 months= Maturity period has met the criteria for short term goal and money used for their wedding

General electric bond – 18 months=Bonds are generally Long term or short term depends upon the maturity period for this bond has only 18 months maturity period

Money market shares = This instrument is readily converted into cash at any point in time

Saving account = No obligation of any maturity period saving account is personal account

Short term junk Bonds = Short term junk bonds are for a short period of time

Energy sector mutual fund = This sector mutual fund has long term maturity period and thereafter returns in the long term

Johnson & Johnson stock = It is considered as a dividend growth stock and investor invest for high growth on the market value of the share price

General electric bond – 2.5 years = This instrument has a long term maturity period

Dow ETF ETF is retained for capital gains in the near future period but their gestation period is high

Treasury Note – 60 months = Investment for 60 months which is not suited for short term goal of investor

 

6 0
4 years ago
____ combines all the promotional tools employed by a firm into one comprehensive and unified promotional strategy.
photoshop1234 [79]

Answer: Promotion mix

Explanation: In simple words, promotion mix can be defined as a group of tools used by an organization for their promotional practices which further leads to accomplishment of organisational objectives. It is seen as subset of marketing mix.

Promotion mix is a group of activities related to advertising, public relations,sales promotion, direct marketing and personal selling.

5 0
3 years ago
Barrington company began the year with inventory of $100,000. during the year, the company purchased inventory in the amount of
lesya [120]

The above answer can be explained as under.

The total inventory of Barrington = Beginning Inventory + Purchases

Beginning Inventory = $ 100,000, Purchases = $ 750,000

Ending inventory = $ 90,000

Inventory consumed = total inventory of Barrington - Ending inventory = $ 750,000 - $ 90,000

Inventory consumed = $ 660,000

The journal entry to record inventory consumed -

Cost of goods sold ...... Dr.... $ 660,000

Merchandise Inventory.....Cr.... $ 660,000

6 0
4 years ago
How can a market be segmented using demographics?
tangare [24]

Here is a Answer to your question:

Demographic segmentation divides the market into smaller categories based on demographic factors, such as age, gender, and income. Instead of reaching an entire market, a brand uses this method to focus resources into a defined group within that market.

I am sorry if this was not helpful

Hope this was helpful

7 0
2 years ago
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