Chapter 17

Chapter 17: ROBLEM SETS L What monetary and fiscal policies might be prescribed fm an economy in a deep recession? i If you believe the U.S. dollar will depreciate more dra matically than other investors anticipate, what will be your stance on investments in U.S. auto producers? 3. Choose an industry and identify the factors that will determine its performance in the next three years, What is your forecast for pertOrmance in that time period? 4' What are the differences between bottom-up and top- down approaches to security valuation? What are the advantages of a top-down approach? What characteristics will give firms to business cycles? 6. Unlike other investors. you believe the Bank of Canada is going to loosen monetary policy. What would be your recommendations about investments in the fol- lowing industries? a. Gold mining b. Construction 7. According to supply-side economists. what will be the long-run impact on prices of a reduction in income tav rates? 8. Which of the following is consistent with a steeply u wardly sloping yield curve? a. Monetary policy is expansive and fiscal policy expansive