There has been considerable growth in recent years in the use of economic analysis in investment management. Further significant expansion may lie ahead as financial analysts develop greater skills in economic analysis and these analyses are integrated more into the investment decision-making process. The following questions address the use of economic analysis in the investment decision-making process:

C) Interest rate projections are used in investment management for a variety of purposes. Identify three significant reasons interest rate forecasts may be important in reaching investment conclusions.

D) Assume that you are a fundamental research analyst following the automobile industry for a large brokerage firm. Identify and briefly explain the relevance of three major economic time series, economic indicators, or economic data items that would be significant to automotive industry and company research.