Economics

CFA Level I — Exam Weight: 6-9%

8

Modules

45

Concepts

18

Formulas

27

Quiz Questions

Modules in Economics

8 learning modules covering 6-9% of the CFA Level I exam.

1

The Firm and Market Structures

7 concepts 6 formulas 5 questions
2

Understanding Business Cycles

5 concepts 3 questions
3

Fiscal Policy

6 concepts 3 formulas 4 questions
4

Monetary Policy

6 concepts 3 formulas 4 questions
5

Introduction to Geopolitics

5 concepts 2 questions
6

International Trade

5 concepts 1 formulas 3 questions
7

Capital Flows and the FX Market

5 concepts 1 formulas 2 questions
8

Exchange Rate Calculations

6 concepts 4 formulas 4 questions

Key Formulas

7 essential formulas for Economics.

GDP (Expenditure)

GDP = C + I + G + (X - M)

Consumption + Investment + Government + Net Exports

Fiscal Multiplier

Multiplier = 1 / (1 - MPC)

MPC = marginal propensity to consume

Quantity Theory of Money

M × V = P × Y

Money supply × Velocity = Price level × Real output

Fisher Equation

Nominal rate ≈ Real rate + Inflation

Exact: (1+nom) = (1+real)(1+inf)

Elasticity of Demand

E = %ΔQ / %ΔP

|E| > 1: elastic, |E| < 1: inelastic

No-Arbitrage Forward Rate

F = S × (1 + rₐ)/(1 + r_b)

Interest rate parity

Real Exchange Rate

Real FX = Nominal FX × (P_foreign / P_domestic)

Adjusting for price levels

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