AP Macroeconomics Mkt 5 F Explain Using Graphs As Appropriate How Changes in the Value of a Currency Can Lead to Changes in a Countrys Net Exports and Questions

Practise tracing appreciation or depreciation through relative prices, imports, exports, net exports, current-account balances, aggregate demand, and policy effects.

Exam points

trace appreciation into cheaper imports, dearer exports, higher imports, lower exports, and lower net exports
trace depreciation into dearer imports, cheaper exports, lower imports, higher exports, and higher net exports
identify which exporters, importers, tourists, or foreign-asset holders benefit from a currency change
use a net-export change to infer the trade or current-account direction and the aggregate-demand shift
trace monetary policy through interest rates, the currency value, net exports, and aggregate demand

[Maximum number: 1]

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?

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AP Macroeconomics Mkt 5 F Explain Using Graphs As Appropriate How Changes in the Value of a Currency Can Lead to Changes in a Countrys Net Exports and Questions question 1