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AP Macroeconomics
Unit 6 – Open Economy – International Trade and Finance
Topic 6.3
What role do interest rates play in exchange rate determination?
Changes in interest rates can affect the demand for a currency
Interest rates determine the supply of a currency
Interest rates have no impact on exchange rates
Exchange rates solely determine interest rates
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AP Macroeconomics - 6.3 Foreign Exchange Market
Key terms
Interest rates
Exchange Rate Determination
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About Fiveable
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CCPA Privacy Policy
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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