All AP Macroeconomics Resources
Example Questions
Example Question #2 : Equilibrium
Which of the following are considered open-market activities?
Possible Answers:
Increasing Government Spending
None of these would be considered Open Market Activities
Selling Government Bonds
Decreasing Taxes
Raising Bank Reserve Requirements
Correct answer:
Selling Government Bonds
Explanation:
Selling Government Bonds would be considered open market activities. When the Federal Reserve wants to adjust interest rates, they conduct open market operations - which involves selling government bonds (which raises interest rates by decreasing the money supply) or buying government bonds (which lowers interest rates by increasing the money supply.)
Nicole
Certified Tutor
Certified Tutor
College of St Benedict, Bachelor in Arts, Economics. University of South Florida-Main Campus, Master of Arts, Economics.
Christopher
Certified Tutor
Certified Tutor
Anderson University, Bachelor in Business Administration, Business Administration and Management. North Carolina State Univer...
All AP Macroeconomics Resources
Popular Subjects
Biology Tutors in Los Angeles, Reading Tutors in Atlanta, LSAT Tutors in Boston, SSAT Tutors in San Francisco-Bay Area, ISEE Tutors in Philadelphia, Algebra Tutors in San Diego, ACT Tutors in Washington DC, Spanish Tutors in Los Angeles, ACT Tutors in Houston, Statistics Tutors in Los Angeles
Popular Courses & Classes
GMAT Courses & Classes in Houston, GMAT Courses & Classes in Washington DC, SAT Courses & Classes in Chicago, ISEE Courses & Classes in Denver, MCAT Courses & Classes in Philadelphia, SSAT Courses & Classes in Boston, Spanish Courses & Classes in New York City, MCAT Courses & Classes in Chicago, LSAT Courses & Classes in Atlanta, ACT Courses & Classes in Philadelphia
Popular Test Prep
ISEE Test Prep in Phoenix, LSAT Test Prep in Phoenix, ISEE Test Prep in Boston, LSAT Test Prep in New York City, SAT Test Prep in Washington DC, ISEE Test Prep in Denver, GMAT Test Prep in Miami, MCAT Test Prep in Seattle, GRE Test Prep in San Francisco-Bay Area, SSAT Test Prep in Phoenix
