We will look at the role of money, the role of the Federal government and the Federal Reserve. Because capital markets are so important to businesses and the economy we will also study them in more detail. We will also return to the Federal Reserve and see what actions it is currently taking in response to changes in the economy. We will look at what factors determine the trade balance between countries and how exchange rates are determined. A more detailed version of this outline is available on the class website.
Macroeconomic issues affect many aspects of business.
For example, the sales and profits of a company will often depend on whether the economy is expanding or in a recession. And with the increasing importance of globalization, making effective business decisions requires an understanding of the international economic environment. ECON 311 provides a more advanced coverage of the macroeconomics half. The Finance Department, through its courses and major, provides an opportunity to study capital markets and investing more extensively.