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The two channels through which monetary policy can influence behavior in the goods market are

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Answer:

the two channels through which monetary policy can influence behavior in the goods market are the Saving and Investment Channel and Cash-flow Channel

Step-by-step explanation:

The transmission of monetary policy describes how changes made by the Reserve Bank to its monetary policy settings flow through to economic activity and inflation.

Saving and Investment Channel

Monetary policy influences economic activity by changing the incentives for saving and investment. This channel typically affects consumption, housing investment and business investment.

Cash-flow Channel

Monetary policy influences interest rates, which affects the decisions of households and businesses by changing the amount of cash they have available to spend on goods and services. This is an important channel for those that are liquidity constrained

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