Final answer:
The assertion that money can buy happiness in the passage 'Federigo's Falcon' is false. The story and supporting references suggest that happiness is influenced by relationships and experiences rather than just material wealth.
Step-by-step explanation:
In the context of the passage Federigo's Falcon, the assertion that money can buy happiness is false. The narrative suggests that true happiness is not solely dependent on wealth, as shown by the experiences of the characters within the story. Instead, the text highlights that relationships, selflessness, and other non-material aspects of life contribute significantly to one's happiness. This aligns with the quote from Ambrose Bierce, emphasizing that money's worth is realized only when it is used to obtain goods or services that contribute to well-being, not when hoarded for its own sake. This idea is further supported by research, such as Quoidbach et al. (2010), which indicates that wealth has a complex relationship with happiness.