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... • Approach to Fundamental Analysis – Foreign exchange rates affect U.S. firms and their competitors • How are the following affected by a change in the value of the dollar? – Ski resort in Aspen Colorado – Profits of Rocky Mountain Log homes, an exporter of log homes around the world – Yen profit on ...
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Download pdf | 1002 KB |

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... No role in the economy An expanded role in the economy A reduced role in the economy A role in monetary policies only ...
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Recession

In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
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