AP Macroeconomics 6.5: Exchange Rates and Net Exports
Explain how currency appreciation or depreciation changes import and export prices, net exports, current accounts, and aggregate demand.
- Syllabus
- Effective Fall 2025
- Course
- AP Macroeconomics
Explain how currency appreciation or depreciation changes import and export prices, net exports, current accounts, and aggregate demand.
Assume that the economy of Vortania is in long-run equilibrium.
Based solely on the change in the international value of the Vortanian crown shown in part
C, will Vortania's net exports increase, decrease, or remain the same in the short run?
Point 7: Vortania's net exports will decrease.