In the market for reserves, an open market shifts the supply curve to the , lowering

purchase; right

Option C.

Explanation:

When the economy is operating in an open market and there is purchase of the reserves, the supply curve will shift towards the right which means that the supply of the reserves in the market will increase.

With the increase in the supply of the reserves which is caused by shifting of the supply curve towards the right direction, the interest rate of the federal funds will shift downwards from the original position of the interest rate of the federal fund.

$754.34 per unit

Explanation:

Expected production of product F0 = 920 units

Total Product Cost F0

Total Direct labor hours cost = 6624 hours * $23 / hr = $152,352  

Direct material cost- = 147.90 * 920 units = $136,068

Total Overheads cost of F0 ;

DLHs - 391,680 * 6624 /15088 = 171,957

Setup - 49,830 * 800 / 1700 = 56,949

MHs - 290,700 * 4100 / 8400 = 141,889

Total Overhead cost of F0 = 370,795

Total Product F0 cost = Total direct labor cost + Total direct material cost + total Overhead cost

Total product cost for F0 = 152,352 + 136,068 + 370,795 = $659,215

Total per unit cost for product F0 = $659,215 / 920 units = $754.34 / unit