Which of the following is a role played by the Fed in the U.S. economy?
A) It acts as a lender of the last resort in case of bank runs.
B) It determines the import duty on raw materials being imported into the country.
C) It acts as a direct source of funds for new businesses and startups.
D) It takes political decisions during periods of recessions.
A
You might also like to view...
The trough of a contraction is
A) the point in time at which the level of national business activity reaches a minimum before expanding again. B) the point in time at which the level of national business activity reaches a maximum before contracting again. C) the rate at which the level of business activity is declining. D) an external shock that causes economic activity to decline.
If the marginal propensity to consume is 0.6, what is the long-run expenditure multiplier?
a. 0.0 b. 2.0 c. 2.5 d. 10.0 e. 1.0