In Order to Meet the Dual Mandate, the Fed Must

question 45

Multiple Choice

In order to meet the dual mandate, the Fed must:

• A) maintain price stability.
• B) maintain full employment.
• C) keep unemployment levels near the NAIRU.
• D) All of these statements are true.

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Definitions:

Adjusting Journal Entry

An entry made in the accounting journals at the end of an accounting period to allocate items between accounting periods.

Allowance for Doubtful Accounts

An estimate of the amount of accounts receivable that may not be collected, used to reduce the carrying amount of receivables on the balance sheet.

Net Realizable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Interest Revenue

Income received from investments, savings, or as a payment for lending money.