ilmscore | Prediction Details
"I think Fe response number two is going to focus on Foreign Exchange so drawing the graph and explaining what's going to happen when there's a change in real interest rate on the graph that you drew in a then they're going to ask about the balance of payments and how a higher real interest rate would cause the capital and financial account to move towards a surplus and they're going to finish it off by saying if the currency appreciates how is that going to affect net exports the answer is would decrease right if the currency appreciates other countries are going to buy less of your stuff"
By Jacob Clifford | May 7, 2024 | Pending
From video
2024 AP Macro Exam Predictions 00:04:53 - 00:05:16
Interpreted Prediction
The second FRQ will focus on foreign exchange, requiring drawing the graph, explaining the effect of real interest rate changes, discussing how a higher real interest rate impacts the capital and financial account (surplus), and how currency appreciation affects net exports (decreases).

Prediction Details

Topic
AP Macro FRQ #2 (Foreign Exchange & Balance of Payments)

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