What is the link between the money market and the product market?

Question

Quizplus · Accepted Answer

The link between the money market and the product market is through interest rates. The money market determines short-term interest rates, which affect the cost of borrowing for businesses and consumers. This, in turn, affects the demand for goods and services in the product market, as businesses may be more or less likely to invest in new projects or consumers may be more or less likely to purchase goods and services based on the cost of borrowing.

What Is the Link Between the Money Market and the Product