Chapter 10
The Macroeconomic
Environment for Investme
Decisions
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter Objectives, 1 of 2
By the end of this chapter, you should be able to:
• LO 10-1 Define gross domestic product and specify its componen
• LO 10-2 Identify the factors that affect a specific rate of interest.
• LO 10-3 Differentiate the discount rate, the federal funds rate, an
target federal funds rate.
• LO 10-4 Describe the tools of monetary policy and the mechanics
open market operations.
• LO 10-5 Contrast the different measures of the money supply.
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter Objectives, 2 of 2
• LO 10-6 Explain how monetary and fiscal policy and a federal
government deficit may affect securities prices.
• LO 10-7 Determine which investments may be desirable in an
inflationary environment.
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, The Impact of COVID-19, 1 of 3
• The impact of COVID-19
on the economy and
investment decisions is
hard to determine at the
present time
• Did cause an
unprecedented drop in
gross domestic product.
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Macroeconomic
Environment for Investme
Decisions
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter Objectives, 1 of 2
By the end of this chapter, you should be able to:
• LO 10-1 Define gross domestic product and specify its componen
• LO 10-2 Identify the factors that affect a specific rate of interest.
• LO 10-3 Differentiate the discount rate, the federal funds rate, an
target federal funds rate.
• LO 10-4 Describe the tools of monetary policy and the mechanics
open market operations.
• LO 10-5 Contrast the different measures of the money supply.
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter Objectives, 2 of 2
• LO 10-6 Explain how monetary and fiscal policy and a federal
government deficit may affect securities prices.
• LO 10-7 Determine which investments may be desirable in an
inflationary environment.
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, The Impact of COVID-19, 1 of 3
• The impact of COVID-19
on the economy and
investment decisions is
hard to determine at the
present time
• Did cause an
unprecedented drop in
gross domestic product.
Adair | Nofsinger, Foundations of Investments, 1 st Edition. © 2024 Cengage. All Rights Reserved. May not be scanne
copied or duplicated, or posted to a publicly accessible website, in whole or in part.
