Which of the following accurately describes the FIRST and SECOND steps in the monetary policy transmission mechanism?
A) Changes to the federal funds rate cause changes to market interest rates, affecting borrowing costs for businesses and households.
B) Alterations in market interest rates influence investment and consumption decisions, thereby impacting aggregate demand.
C) Adjustments in aggregate demand lead to changes in output and employment levels within the economy.
D) Fluctuations in output and employment levels prompt adjustments in inflation rates, influencing overall price stability.