What happens on the money balances market (the demand and supply for money) when the Federal Reserve conducts an open market purchase of bonds that is unanticipated. How will this impact the nominal interest rate and the quantity of money held by the public?

Increased Money supply and decreased rates

Explanation:

When the Federal reserve buys the bonds on the Open market operations, the cash is disbursed by the Fed to the seller of bonds which in case increases the money that is supplied in the market and hence the quantity of money held by general public. The interest rate will ultimately decrease as the money supply is more and people tend to spend more than save.

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the answer is i don't know

answer; the correct answer is (direct foreign investment);