Basic Economic Concepts - Introduction


A good grasp of how the economy works and what factors influence market cycles is essential for the investment adviser, as its effect on stock and bond prices will most likely affect the value of securities within your client's portfolio.


Within this section we will discuss the various factors that affect the health of the economy, such as government fiscal and monetary policy, interest rates and inflation.
Economic Indicators


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RELATED TERMS
  1. Fiscal Policy

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  3. Monetary Theory

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  4. Monetary Policy

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  5. Macroeconomic Factor

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  6. Fundamental Analysis

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RELATED FAQS
  1. What's the difference between monetary policy and fiscal policy?

    Learn how monetary policy refers to bank actions to control interest rates and money supply, while fiscal policy refers to ... Read Answer >>
  2. How does the government influence the securities market?

    Governments generally say they don't like to take an active role in the securities market (except for regulating it); however, ... Read Answer >>
  3. How can a change in fiscal policy have a multiplier effect on the economy?

    Learn about how changes in fiscal policy have a multiplier effect on the economy. The goal of expansionary fiscal policy ... Read Answer >>
  4. What causes a bond's price to rise?

    Learn about factors that influence the price of a bond, such as interest rate changes, credit rating, yield and overall market ... Read Answer >>
  5. How do fiscal and monetary policies affect aggregate demand?

    Learn about the impact fiscal and monetary policy have on aggregate demand, and discover how the government influences economic ... Read Answer >>
  6. Do lower interest rates increase investment spending?

    Learn how the Federal Reserve Board uses monetary policy and the federal funds rate to influence long-term interest rates ... Read Answer >>
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