The Federal Reserve Is Able to Achieve Its Dual Mandate

question 13

Multiple Choice

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

• A) short-run aggregate supply.
• B) aggregate demand.
• C) long-run aggregate supply.
• D) government spending.

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Definitions:

Bilateral Contract

An agreement where each of the two parties makes a promise or set of promises to the other.

Unilateral Contract

An agreement in which a promise by one party is exchanged for an act performed by the other party.

Executed

A term applied to a contract in which all of the terms have been fully performed.

Implied-In-Law

A legal obligation arising not from explicit agreement but from a duty inherent in social or legal traditions.