AP MacroEconomics Unit 3

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Last updated 5:09 PM on 6/30/26
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4 Terms

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Real Wealth Effect

a change in the price level, changes the purchasing power of assets causing consumers to buy more (or less) goods and services

2
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Interest Rate Effect

A change in price level, changes the amount of savings in the economy, which changes the amount of savings in the economy, which changes the interest rates. This leads to a change in borrowing and investment

3
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Exchange Rate Effect

A change in price level, changes the amount that people from other countries are willing and able to purchase

4
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