Indicate whether each of the following is an example of an automatic stabilizer or discretionary fiscal policy.

1. the government increases the top income tax bracket to 35%.
2. the tax rate paid by an individual falls from 20% to 15% when his pay is reduced during a recession.
3. a person qualifies for unemployment compensation when she loses her job during a recession.
4. the government votes to increase military spending.
5. the government collects more tax revenue during an expansion because the stock market is booming.

Which of the following is not a consideration when determining your asset allocation

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

Why should managers invest any excess cash