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AP Macroeconomics
Unit 6 – Open Economy – International Trade and Finance
Topic 6.3
What is the connection between monetary policy and exchange rates?
Changes in monetary policy can influence the exchange rate
Monetary policy has no impact on exchange rates
Exchange rates determine the effectiveness of monetary policy
Monetary policy is solely determined by exchange rate fluctuations
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AP Macroeconomics - 6.3 Foreign Exchange Market
Key terms
Exchange Rates
Monetary Policy
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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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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