If the Fed Sells Bonds in an Open Market Operation,which

question 70

Multiple Choice

If the Fed sells bonds in an open market operation,which of the following is most likely to occur?

• A) The equilibrium level of GDP decreases
• B) The money supply increases
• C) The interest rate falls
• D) The aggregate expenditure line shifts upward
• E) The open market operation is said to be expansionary.

---

Definitions:

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, labor, and overhead expenses.

Manufacturing Overhead

All indirect costs associated with the production process, including but not limited to utilities, maintenance, and factory equipment depreciation.

Hourly Wages

Payment to workers based on the number of hours worked, typically associated with non-salaried employees.

Cost Of Goods Manufactured Statement

A financial document that calculates the total cost of goods produced within a specific period, including direct materials, direct labor, and overhead.