-In Figure 15

question 10

Multiple Choice

-In Figure 15.3,the Fed can change the equilibrium interest rate from 2 percent to 6 percent by

• A)Selling bonds in the open market.
• B)Reducing the discount rate.
• C)Buying bonds in the open market.

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Definitions:

Average Operating Assets

The average value of the assets used in the core operations of a business over a period, important for evaluating investment efficiency.

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change over the short term, such as advertising expenses.

Return on Investment

The ratio of net profit to cost of investment, indicating the efficiency of an investment in generating profit.

Responsibility Level

The scope of authority and accountability designated to individuals or departments within an organization, often related to budgeting and costs.