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AP Macroeconomics
Unit 6 – Open Economy – International Trade and Finance
Topic 6.6
What role do central banks play in determining domestic interest rates?
They use monetary policy tools to set or influence interest rates
They rely on market forces to determine interest rates
They have no influence over domestic interest rates
They adjust foreign exchange rates to impact interest rates
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AP Macroeconomics - 6.6 Real Interest Rates and International Capital Flows
AP Macroeconomics - 6.6 Real Interest Rates and International Capital Flows
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Central Banks
Domestic Interest Rates
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Cram Mode
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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