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AP Macroeconomics
Unit 6 – Open Economy – International Trade and Finance
Topic 6.4
When a country practices an expansionary fiscal policy, what effect does it have on the exchange rate for that country's currency?
The currency fluctuates randomly
The currency depreciates
The currency appreciates
The currency remains unchanged
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AP Macroeconomics - 6.4 Effect of Changes in Policies & Economic Conditions on the Foreign Exchange Market
Key terms
Exchange Rate
Expansionary Fiscal Policy
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About Us
About Fiveable
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Careers
Testimonials
Code of Conduct
Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
Request a Feature
Report an Issue
© 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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