12 min read
This AP Macroeconomics study guide covers the foreign exchange (FOREX) market, fiscal policy, monetary policy, and trade barriers. It explains how supply and demand influence currency values, the effects of expansionary/contractionary fiscal and monetary policies on exchange rates, and the impact of tariffs and quotas. The guide also includes practice questions and exam tips.
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Question 1 of 12
Imagine everyone suddenly wants to buy Italian leather goods 🇮🇹. What happens to the demand for the Euro (€)?
Decreases
Increases
Remains unchanged
Becomes perfectly elastic