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AP Macroeconomics 2013

cocoforcollegecocoforcollege 2 replies1 discussions
Since there isn't a single thread for it yet, I figured I'd start.

Last minute stuff:
How are y'all studying? questions/clarifications/tips/study guides/cram packets/ pdfs to prep books, pooooost away! :)
edited May 2013 in History & Social Sciences
62 replies
Post edited by cocoforcollege on
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Replies to: AP Macroeconomics 2013

  • byahnoobbyahnoob 7 replies0 discussions New Member
    Great site
    Macroeconomics

    im aiming for at least a 4 wish me luck :D
    edited May 2013
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  • malaisemalaise 14 replies1 discussions
    Practice tests. We finished Macro about two weeks ago and I can't believe how much I've already forgotten. How do interest rates translate onto the AD/AS model?
    edited May 2013
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  • newperspectivenewperspective 2 replies0 discussions
    Interest rates --> increased investment spending --> increased AD
    edited May 2013
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  • christinochristino 1 replies0 discussions Forum Champion
    I can't find it in my textbook, so I'll ask: what's the relationship between AD, bond (loanable funds) prices, and inflation? I know AD and inflation, but I don't quite understand how the 3 work.
    edited May 2013
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  • cuseas17cuseas17 2 replies0 discussions Forum Champion
    I'm not sure about bond prices, but if the supply of loanable funds increases -> interest rate decreases -> investment spending/durable goods consumption increases -> AD increases.
    edited May 2013
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  • Fizz14Fizz14 1 replies0 discussions
    Don't bond prices need to rise with inflation so that they remain constant? Or am I way off
    edited May 2013
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  • FastNeutrinoFastNeutrino 19 replies0 discussions New Member
    At least 40% of the test is just finding the correct monetary and fiscal policies for expansion or contraction of the economy. If you know that well you're pretty much golden.
    Bond prices and interest rates are inversely related to each other. This is because if interest rates increase, bonds seem less desirable due to having less return, so demand for bonds goes down, which decreases bond price and quantity.
    For example, if there is inflation, there is more money, so the supply of money increases, which lowers interest rates. This means that bond prices increase.
    edited May 2013
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  • arooj1a2b3carooj1a2b3c 1 replies0 discussions
    anyone who wants to cram macro - wb1i3 - Tinychat
    edited May 2013
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  • UrAverageAznUrAverageAzn 9 replies0 discussions
    ^^ @Fastneutrino

    I may be confusing myself, but don't bonds become more desirable when interest rates increase? I thought that the interest rates for bonds were different than interest rates for investments (where people are borrowing money and lower interest rates means less money borrowers have to pay back). When buying bonds, they are supplying money which they hope to make money off of. If interest rates are high, borrowers will have to pay more money to bond owners, increasing the desire to own bonds.
    edited May 2013
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  • FastNeutrinoFastNeutrino 19 replies0 discussions New Member
    Yeah, I must've confused interest rates and transaction money demand or something. I think it's more that when transaction demand increases, interest rates happen to increase. The real relationship is that transaction demand and asset demand are inverse though. When you want more money to spend, you don't want as much to save.
    Although I guess, at this point, it's not a big deal. =P
    edited May 2013
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  • notevenwrongnotevenwrong 13 replies0 discussions Forum Champion
    was this exam dreadful for anyone else today? ._.
    edited May 2013
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  • sarahezsarahez 9 replies1 discussions Forum Champion
    I got so caught up on the very last FRQ letter... my brain must've been dead..
    edited May 2013
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  • notevenwrongnotevenwrong 13 replies0 discussions Forum Champion
    I messed up on one of the parts to the last frq, saying the real interest rate increased

    but for the last part, the real interest rate was 5% right?
    edited May 2013
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  • TheBombingRangeTheBombingRange 48 replies0 discussions New Member
    I got 5%, the real GDP thing was a distractor.
    edited May 2013
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  • byahnoobbyahnoob 7 replies0 discussions New Member
    lol it was 5%? I COMPLETELY guessed. WOW GOOD STUFF
    edited May 2013
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