When economists and policymakers refer to the Fed's dual mandate,they are referring to
A) price and exchange rate stability.
B) price stability and maximum employment.
C) moderate long-term interest rates and maximum employment.
D) price stability and moderate long-term interest rates.

Question

Quizplus · Accepted Answer

The Fed's dual mandate is to promote maximum employment and price stability in the economy. This means that the Fed aims to keep unemployment low while keeping inflation in check. It is not focused on exchange rates or interest rates as primary objectives. Therefore, choice B (price stability and maximum employment) is the correct answer.

When Economists and Policymakers Refer to the Fed's Dual Mandate,they