From the course: Cert Prep: CFA Exam Level 1
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Key topics: Economics
From the course: Cert Prep: CFA Exam Level 1
Key topics: Economics
- [Instructor] Economics questions on the CFA exam test more than just definitions. They challenge your ability to apply models, interpret charts, and reason through cause and effect. Let's talk about test-taking strategies and topic reminders to help you confidently tackle economics problems and avoid common pitfalls. So, strategy number one. Think in terms of cause and effect. Many economics questions test your understanding of dynamic relationships. For example, if interest rates rise, what happens to investment? If the currency strengthens, what happens to exports? Don't memorize facts. Understand the chain reaction. Strategy number two, master the visuals. Many CFA questions describe how curves shift, like demand moving left or a business cycle reaching a peak. You need to know what each model looks like. Understand what causes movements along versus shifts of the curve. That's that quantity demanded versus a…
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