Exam 4: Question 2 What is the Federal Reserve's mandate? to print as many dollars as possible without causing inflation to encourage inflation and raise unemployment to ensure maximum employment while maintaining stable prices to ensure that interest rates remain low all the time

### The Federal Reserve's mandate is to ensure maximum employment while maintaining stable prices.

## Step1: Understanding the Federal Reserve's mandate### The Federal Reserve, often referred to as the Fed, is the central bank of the United States. It was created to provide the country with a safe, flexible, and stable monetary and financial system. The Federal Reserve's mandate is not to print as many dollars as possible without causing inflation, encourage inflation and raise unemployment, or ensure that interest rates remain low all the time.## Step2: Identifying the correct mandate### The correct mandate of the Federal Reserve is to ensure maximum employment while maintaining stable prices. This mandate is often referred to as the "dual mandate" because it involves two main goals: maximum employment and stable prices. The Fed uses various tools to influence the availability and cost of money and credit to help promote these goals.