1. What monetary and fiscal policies might be prescribed for an economy in a deep recession?
2. If you believe the U.S. dollar will depreciate more dramatically than do other investors, 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 3 years. What is your forecast for performance 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?
5. What characteristics will give firms greater sensitivity to business cycles?
6. Unlike other investors, you believe the Fed is going to loosen monetary policy. What would be your recommendations about investments in the following 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 tax rates?
8. Which of the following is consistent with a steeply upwardly sloping yieldecurve?
a. Monetary policy is expansive and fiscal policy is expansive.
b. Monetary policy is expansive while fiscal policy is restrictive.
c. Monetary policy is restrictive and fiscal policy is restrictive.
9. Which of the following is not a governmental structural policy that supply-side economists believe would promote long-term growth in an economy?
a. A redistributive tax system.
b. A promotion of competition.
c. Minimal government interference in the economy.
10. Consider two firms producing smart phones. One uses a highly automated robotics process, whereas the other uses workers on an assembly line and pays overtime when there is heavy production demand.
a. Which firm will have higher profits in a recession? In a boom? b.. Which firm's stock will have a higher beta?
Attachment:- Assignment.rar