July 4, 2008

AP Scores

Posted in AP Exam at 11:04 am by davidprudente

Congratulations to my students for doing well on the AP Macro exam.

I’ve heard from several of you and and very happy that your hard work has paid off

Enjoy the Summer!

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April 28, 2008

AP Economics Study Guides

Posted in AP Exam at 6:41 pm by davidprudente

Check out Jason Welker’s Wikinomics study guide page for both the Macro and Micro exams.

April 17, 2008

Capital Flow Chart

Posted in AP Exam, International Trade, Net Capital Outflow, Test Info at 7:00 pm by davidprudente

Interest

Rate

Capital

Flows

Demand for

Currency

Value of Currency

Imports

Exports

In

Appreciates

Out

Depreciates

Remember, This chart does not work for Capital Flight or Trade Barrier Scenarios

What happens when Interest Rates Change

Posted in AP Exam, Test Info at 4:55 pm by davidprudente

Here’s the written explanation for the Capital Flow Table:

Scenario I: Increasing Interest Rates.

As Interest Rates rise in the United States, Capital Flows In to the country because the higher interest rates are an incentive for foreign capital. As capital flow in to the nation, the Demand for the Dollar Increases, as demand for the dollar increases, the Value of the Dollar Appreciates. When the dollar appreciates, goods made in the United States appear more costly to domestic and foreign consumers. Therefore, Imports Increase while Exports Decrease.

Scenario II: Decreasing Interest Rates.

As Interest Rates fall in the United States, Capital Flows Out of the country because the lower interest rates are a disincentive for foreign and domestic capital. As capital flow out of the nation, the Demand for the Dollar Decreases, as demand for the dollar decreases, the Value of the Dollar Depreciates. When the dollar depreciates, goods made in the United States appear less expensive to domestic and foreign consumers. Therefore, Imports Decrease while Exports Increase.

March 4, 2008

AP Exam Registration

Posted in AP Exam, Microeconomics at 7:58 pm by davidprudente

As you know AP exam registration must be completed by early next week. If you are interested in taking the Micro Exam, please see me to discuss. Because there is no check box on your registration sheets for the Micro Exam, you have to write it in on the bottom of the exam.

For those interested in the Micro exam, here is a chapter study guide to help you figure what you’ll need to read. In addition, here is a topic guide to help you understand what you’ll need to know.

P.S. To all of you who do not know whether you are taking micro or macro…figure it out.