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Chapter 11

The economic environment for business

Outcome

By the end of this session you should be able to:

 explain the main objectives of macroeconomic policy

 explain the potential conflict between the main objectives of macroeconomic
policy and its impact on policy targets

 explain the impact of general macroeconomic policy on planning and decision
making in the business sector

 define monetary policy and explain the main tools used

 discuss the general role of monetary policy in the achievement of
macroeconomic policy targets

 discuss use of interest rates in the achievement of macroeconomic policy
targets

 define exchange rate policy and discuss its role in the achievement of
macroeconomic policy targets

 explain the impact of specific economic policies on planning and decision
making in the business sector

 define fiscal policy and explain the main tools used

 discuss the role of fiscal policy in the achievement of macroeconomic policy
targets

 explain the need for competition policy and its interaction with business
planning and decision making

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