Statement I: When the Fed Was Set Up in 1913,it

question 354

Multiple Choice

Statement I: When the Fed was set up in 1913,it was envisaged as a lender of last resort.
Statement II: The Fed did a basically good job in limiting the financial collapse between 1929 and 1933.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

---

Definitions:

MC (Marginal Cost)

The additional cost incurred in producing one more unit of a good or service.

Downward-Sloping Demand

A representation of the relationship between price and quantity demanded, indicating that as price decreases, demand increases.

Reasonable Substitutes

Alternative products or services that can satisfactorily replace others, meeting the same needs or wants.