AP®︎ Macroeconomics Unit 6: Notes & Study Guide
Prepare for your quiz, test, or the AP exam with a comprehensive review on Unit 6 of AP Macroeconomics – Open Economy – International Trade and Finance.
Unit 6: Open Economy – International Trade and Finance
This unit introduces international trade and finance, explaining exchange rates, balance of payments, and how global interactions affect the domestic economy.
Begin with Topic 6.1: Balance of Payments Accou...To review Unit 6, go through each of the 6 topics below.
Everything you actually need to know for your Unit 6 test, pulled directly from the AP® Macroeconomics curriculum.
Balance of Payments Accounts
Balance of Payments Accounts
- The Balance of Payments
- The Current Account
- The Capital and Financial Account
Exchange Rates
Exchange Rates
- What an Exchange Rate Is
- How Exchange Rates Are Determined in a Floating System
- Calculating Exchange Rates and Conversions
The Foreign Exchange Market
The Foreign Exchange Market
- The Foreign Exchange Market
- Demand and Supply of a Currency
- Exchange Rate Equilibrium
Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market
Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market
- How the Foreign Exchange Market Works
- What Shifts Currency Demand and Supply
- Fiscal Policy and Exchange Rates
Changes in the Foreign Exchange Market and Net Exports
Changes in the Foreign Exchange Market and Net Exports
- How Currency Appreciation and Depreciation Work
- How Exchange Rates Affect Exports, Imports, and Net Exports
- From Net Exports to Aggregate Demand
Real Interest Rates and International Capital Flows
Real Interest Rates and International Capital Flows
- Real Interest Rates and Why Capital Moves
- Inbound vs Outbound Capital Flows
- Loanable Funds Market
Notes
1 credit used · 5/5 remaining