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.
Question 2
The law of demand states that there is a negative relationship between price and quantity demanded, ceteris paribus.
Indicate whether the statement is true or false
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