AFM131 Lecture Notes - Lecture 6: Money Supply, Subprime Mortgage Crisis, Government Spending

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Bob Sproule

Document Summary

The 6 categories of government involvement in business: Crown corporations - their role in the economy. Laws and regulations - taxation, consumer protection re environmental controls, working conditions and labour-management issues. Taxation and financial policies - collect taxes, to achieve certain goals. Government expenditures - provide direct and indirect aid: tax reductions, grants, loans and loan guarantees. Services - direct and indirect activities: helping companies globalize, training and re-training the workforce. We have a mixed economy in canada which relates to the allocation of resources by both the market and the government. We have been over-shadowed by the u. s. economy- developed faster with products either not made in canada or not available because of a weak east/west distribution system. Led the federal government to the development of the national policy - high protective tariffs. Government intervention direct towards creating a stable economy (refer to chapter 3 re trade agreements)