《《Investment 8th Chap017》.docVIP

CHAPTER 17: MACROECONOMIC AND INDUSTRY ANALYSIS PROBLEM SETS 1. Expansionary (looser) monetary policy to lower interest rates would stimulate both investment and expenditures on consumer durables. Expansionary fiscal policy (i.e., lower taxes, increased government spending, increased welfare transfers) would stimulate aggregate demand directly. 2. A depreciating dollar makes imported cars more expensive and American cars less expensive to foreign consumers. This should benefit the U.S. auto industry. 3. This exercise is left to the student; answers will vary. 4. A top-down approach to securi