AP Macroeconomics · Past multiple choice · Question 10, older AP Economics course description · Four-function calculator
The Fed sells a large amount of bonds
The Federal Reserve sells a large amount of government securities. Predict the effect on bank lending, the money supply or interest rates.
Lessons this question tests
1 Read the question
The question is College Board's: sample question 10 in AP Economics Course Description. It starts on page 34 of the PDF. College Board no longer posts this edition, so it opens from the copy the Internet Archive saved on June 3, 2016. A four-function calculator is allowed, as on the exam.
Open Question 10 (PDF, page 34)
2 Pick your answer
Question and answer key: College Board, from the Internet Archive. The title and summary are ours.