Open Market Sales of Bonds by the Federal Reserve Do

question 32

True/False

Open market sales of bonds by the Federal Reserve do not have a direct effect on the government budget.

---

Definitions:

Cost Curve

A graphical representation showing the cost of producing different quantities of a good or service.

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Residual Income

A performance measure for investment centers that subtracts the opportunity cost of the investment from the income generated by the assets of the investment.