AFM131 Lecture Notes - Lecture 2: Money Supply, Government Spending, Price Fixing

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Thomas Manning

Document Summary

Crown corporations there are hundreds of these companies and they play an important role in our economy. Services helping canadian companies go international, training the workforce , etc. National policy- high tariffs, encouraging east to west trade. One of the most important things our federal government provides is the banking and monetary system. They also provide trade regulations, national defense, and immigration. Competition act- merging of large companies = bad sometimes. Competition bureau independent law enforcement agency that ensures a competitive and innovative marketplace. (stops price fixing) Marketing boards: organizations that control the supply or pricing of certain agricultural products in canada. Fiscal policy = the federal governments effort to keep the economy stable by increasing or decreasing taxes or government spending. What is tax spent on: encourage/discourage behaviour, use of tax credits, federal budget. Monetary policy: the management of the money supply and interest rates (controlled by the bank of canada)