AP Economics – 4/30/19

I.  Bellwork Q&A

• 43.1 WS on iLEARNin Module 43 Student 
• Why China’s Currency Tangos with the USD?

II.  Objectives

• Explain the difference between fixed exchange rates and floating exchange rates
• Discuss the considerations that lead countries to choose different exchange rate regimes
• Describe the effects of currency devaluation and revaluation under a fixed exchange rate regime
• Explain how macroeconomic policy affects exchange rates under a floating exchange rate regime

III.  Exchange Rate Policy and Macroeconomic Policy page 427-434

A.  Exchange Rate Policy

The Determinants of Exchange Rates and Managed Exchange Rate Systems – HD

1. Exchange Rate Regimes
2. How Can an Exchange Rate Be Held Fixed?
3. The Exchange Rate Regime Dilemma

B.  Exchange Rates and Macroeconomic Policy

1. Devaluation and Revaluation of Fixed Exchange Rates
2. Monetary Policy under a Floating Exchange Rate Regime
3. International Business Cycles

IV. Classwork on iLearn in Module 43 Student – Due tomorrow

• Worksheet 43.2: Exchange Rate Policy
• Worksheet 43.4: Exchange Rates and Macroeconomic Policy

AP Economics