1. AP ECONOMICS: April 23 Assignment:
Warm-up Show the short- and long-run impacts of lower interest rates in the LRAS-AS- AD Model.
A.P. Economics Learning Target: In order to understand how an open economy interacts with the rest of the world, I will learn how transactions in the financial markets and product markets impact exchange rates. I will know I have it when I can draw FOREX market graphs showing the impact of flows of items between countries.
--Rule: --a current account deficit means a financial account surplus
(and vice-versa) --imbalances taken care of by central bank (Fed) accommodation -BOP surplus: Fed takes in the excess foreign currency & pays for it in USD -BOP deficit: Fed takes in USD and pays for them with its foreign currency reserves
--FOREX market graphs (axes labels & basic shifts) -exchange rates (appreciation vs. depreciation); determinants of exchange rates (all but speculation) -begin Worksheet 42.4 (HO)
Assignment:
--watch videos at Mr. Clifford’s web site (AC-DC Economics)
MCT #4 is Mon., April 30th and Tue., May 1st FRQs #8 & #9 are Wed., May 2nd