Focus: What is the comparative advantage model? How can free trade benefit individuals and societies? How can we determine favorable terms of trade for two parties?
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6.1: International Accounting: Balance of Payments
Focus: How do we track the movement of funds and goods across borders?
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6.2: Exchange Rates
Focus: How do we measure and compare the cost of goods and services in different countries?
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6.3: Foreign Exchange Markets (ForEx)
Focus: How do we show the relationships between currencies using the foreign exchange model?
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6.4: How Policy Affects Exchange Rates
Focus: How might fiscal and monetary policy affect foreign exchange markets? How will this further impact trade, net exports, and aggregate demand?
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6.5: Changes in the Foreign Exchange Market and Net Exports
Focus: How do changes in the value of currency lead to changes in net exports and aggregate demand?
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6.6: Real Interest Rates and International Capital Flows
Focus: How to differences in real interest rates across countries affect financial capital flows, foreign exchange markets, and loanable funds markets?
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6.7: Unit 6 Review
6.8: Unit 6 Test
AP Practice Test - Option to use as Final Exam 5/9 and 5/11