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Broadly speaking, the economy consists of households, firms, government, and financial institutions. Name two parts, areas,...

Broadly speaking, the economy consists of households, firms, government, and financial institutions. Name two parts, areas, or types of government that can have influence over the economy

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Answer #1

Explanation:

- Financial policy:

Monetary Policy of any government can have major impact on economy of a nation since it has the power to stimulate the economy and change the way economy behave. Financial policies are performing major part in economy and it can make or break economy. How the taxes are levied can majorly impact economy. Financial policies move control the flow of the money and it can inject new money flow in system to revive it.

- Fiscal Policy:

Another major player in stimulating and impacting economy at it best is fiscal policy. Fiscal policy mainly works to overcome from struggling economy and reduce the inflation in market. Interest rate is popular tool to control the flow money through changing interest rates.

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