2003, Form B, Question 1 · 15 points
Deficit spending, the currency and trade
Graph an economy below full employment and show the short-run effect of more deficit spending, graph the loanable funds market to find the real interest rate change, then explain the effects on the currency's value, exports, imports, the trade balance and long-run growth.
This exam had three free-response questions to answer in 50 minutes of writing time after a 10-minute planning period, with about half the time suggested for Question 1 and the rest split evenly between Questions 2 and 3. The current exam has 3 free-response questions in 60 minutes. The skills these questions practice still count.
1 Read the question
The question is College Board's, from the 2003, Form B exam. It starts on page 2 of the PDF. College Board no longer posts this exam, so it opens from the copy of College Board's PDF that the Internet Archive saved on September 28, 2023.
2 Write your answer
Answer each part the way you would on the exam, in full sentences, with your work shown. Your writing saves as you type.
3 Score it
Score your answer against College Board's scoring guidelines, one point at a time. Give yourself a point only when your answer says what the guideline asks for.
Scoring guidelines (PDF, page 2)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.