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5 September, 06:47

Match the correct economic terms to their descriptions. Federal government's way to influence the economy through taxes Federal reserve's tool to influence the money supply in the economy A market where firms buy services related to production A market where finished goods and services are traded monetary policy arrowBoth factor market arrowBoth product market arrowBoth fiscal policy arrowBoth

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  1. 5 September, 10:16
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    The correct answer is:

    Fiscal policy; Monetary policy; Factor market; Product market.

    Explanation:

    Fiscal policy can be defined as a tool that is used by the federal or central government of a country to influence the workings of an economy through changes in government spending and taxation.

    Monetary policy refers to the tools that the central bank of a country uses to influence the supply of money in the economy and hence the overall economic activities.

    Factor market refers to the marketplace where the households provide their factor services and firms purchase them for the production of goods and services.

    The product market is the marketplace where the firms supply their finished goods and services and are bought by households for consumption.
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