The Federal Reserve is able to achieve its dual mandate because monetary policy affects:

Question

Quizplus · Accepted Answer

The Federal Reserve achieves its dual mandate—promoting maximum employment and stabilizing prices—primarily through influencing aggregate demand. By adjusting interest rates and conducting open market operations, the Fed can influence the level of spending and investment in the economy, thereby affecting overall economic activity and inflation.

The Federal Reserve Is Able to Achieve Its Dual Mandate