Unit 6: Open Economy - International Trade and Finance
AP MacroeconomicsWhat You Will Learn
The Balance of Payments
The Foreign Exchange (Forex) Market
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Appreciation vs. Depreciation
How Policies Affect Exchange Rates
Monetary Policy
Fiscal Policy
Real Interest Rates Drive Capital Flows
The Complete Chain: Policy → Forex → Trade
Key Relationships Summary
Connections to Earlier Units
Study Tips
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AP Exam Weight
Unit 6 topics
Unit 6 overview6.1Balance of Payments Accounts6.10Economic Integration and Trade Agreements6.2Exchange Rates6.3The Foreign Exchange Market6.4Effect of Changes in Policies and Economic Conditions on the Foreign Exchange Market6.5Changes in the Foreign Exchange Market and Net Exports6.6Real Interest Rates and International Capital Flows6.7The Effect of Trade Policies6.8Fiscal and Monetary Policies in Open Economies6.9Exchange Rate Regimes