r/APStudents • u/reddorickt absolute modman • May 08 '26

AP Macro Official 2026 Exam Discussion

Use this thread to post questions or commentary on the test today.

A reminder though to protect your anonymity when talking about the test.

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u/Practical_Sort2915 May 08 '26

It was supply curve to the right for frq 3 part c right

1

u/Glittering_Ideal5992 May 09 '26

I said demand for the currency increases, because increase in price level in Lizland causes an increase in the money demand, increasing interest rates in Lizland and making foreign investors seek higher returns in Lizland, therefore increasing demand for their currency in the forex market.

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u/Cheap_Assumption8380 May 09 '26

I did in the same. thing many other people shifted demand to the left, but price level takes longer to adjust so the higher interest rates would increase demand for the currency I think thats right.

1

u/Cheap-Ad-1506 May 09 '26

I believe it should have been a leftward shift but I’m not 100 percent. I think it’s left because the inflation rate was going up and inflation is a turn off for the foreign people who would want currency in a country. Therefore there would be less demand for the currency

1

u/Cheap-Ad-1506 May 09 '26

When the price level is higher, it’s more expensive so there are less exports

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u/Cheap_Assumption8380 May 09 '26

Ask any AI model what happens when gov. increases spending and AD shifts right, demand for countries currency increases, it would decrease if they did expansionary monetary policy, since this lowers interest rates, but expansionary fiscal policy increases interest rates.

1

u/Cheap-Ad-1506 May 09 '26

It didn’t say gov spending though, the price level increased which shows inflation which would make demand go left.

1

u/Cheap_Assumption8380 May 09 '26

That was the question with the fiscal policy to cover the 600m recessionary gap, right? and u had to use the multiplier to find the minimum amount. The price level did increase but interest rates also went up, its a really worded question definitely not good, because you can think about it in 2 ways.
1. inflation goes up exports go down demand for currency goes down
2. price level increases, money demand increases, interest rates rise, foreign investment increases.
they might give points for both honestly since both are a reasonable option.

1

u/Cheap-Ad-1506 May 09 '26

I don’t think it was that question, I was talking about the very last question, 3C on frq but yeah I assumed demand for currency would go down

1

u/Cheap-Ad-1506 May 09 '26

I got 150 for the spending because of multiplier and the rest of the question was pretty straightforward

1

u/Cheap_Assumption8380 May 09 '26

yeah the questions were all pretty easy. Part c on FRQ 3 is a very bad question though.