The Federal Reserve has a dual mandate to promote maximum employment and stable prices. This can be hard because attempts to reduce unemployment can cause more inflation.

Question

Quizplus · Accepted Answer

The statement is true. When the Federal Reserve tries to promote maximum employment, it may lead to an increase in demand for goods and services, which can result in higher prices and inflation. Therefore, the dual mandate of the Federal Reserve can be challenging to achieve simultaneously.

The Federal Reserve Has a Dual Mandate to Promote Maximum