2005, Form B, Question 3 · 7 points
Budget deficit, interest rates and the dollar
Graph how a larger budget deficit changes the real interest rate in the loanable funds market and say what happens to business investment, then graph the foreign exchange market for the dollar and explain how the country's goods become more or less competitive.
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 2005, Form B exam. It starts on page 3 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 June 23, 2024.
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 5)
Question, scoring guidelines and Chief Reader report: College Board, from the Internet Archive. The title, summary are ours.