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  1. AP Macroeconomics
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Financial Sector

Question 1
college-boardMacroeconomicsAPExam Style
1 mark

What effect would an increase in a nation’s interest rates have on its exchange rate in the short run?

Question 2
college-boardMacroeconomicsAPExam Style
1 mark

When economists say that money acts as a store of value, they mean that money can do which of the following?

Question 3
college-boardMacroeconomicsAPExam Style
1 mark

Which of the following is an example of contractionary monetary policy?

Question 4
college-boardMacroeconomicsAPExam Style
1 mark

How would an appreciation of the domestic currency most likely affect a country's exports?

Question 5
college-boardMacroeconomicsAPExam Style
1 mark

Which of the following is an example of automatic stabilizer in the economy?

Question 6
college-boardMacroeconomicsAPExam Style
1 mark

Which of the following best represents fiat money?

Question 7
college-boardMacroeconomicsAPExam Style
1 mark

Considering current inflation targets, what action might consumers take if they believe these targets will be met consistently in the future?

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Question 8
college-boardMacroeconomicsAPExam Style
1 mark

What can be a long-term consequence of a sustained current account deficit?

Question 9
college-boardMacroeconomicsAPExam Style
1 mark

Which of the following would lead to an increase in the money supply?

Question 10
college-boardMacroeconomicsAPExam Style
1 mark

Which of the following best describes the money multiplier?