AP®︎ Macroeconomics: Topic 6.5 Practice Test
Prepare for your quiz, test, or the AP exam with focused practice questions on Topic 6.5 of AP Macroeconomics – Changes in the Foreign Exchange Market and Net Exports.
Questions List
Topic 6.5
Question 1 Easy
This question tests the following: MKT-5.F
What does it mean when a currency appreciates?
What You’re Being Tested On:
Explore the learning objectives taken directly from the College Board’s AP® Macroeconomics Curriculum. Ensure you’re prepared for the exact topics covered on the AP® exam, in-class tests, and quizzes, and gain confidence in your mastery of the material.
Topic 6.5: Changes In The Foreign Exchange Market And Net Exports
Learning Objective: MKT-5.F
Explain (using graphs as appropriate) how changes in the value of a currency can lead to changes in a country’s net exports and aggregate demand.
Essential Knowledge: MKT-5.F.1
Factors that cause a currency to appreciate cause that country’s exports to decrease and its imports to increase. As a result, net exports will decrease.
Essential Knowledge: MKT-5.F.2
Factors that cause a currency to depreciate cause that country’s exports to increase and its imports to decrease. As a result, net exports will increase. [See EK MOD-2.A.3 and EK MOD-2.H.1 for explanations of the effect of changes in net exports on aggregate demand and the resulting effects on output, employment, and the price level.]
