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kati45 [8]
3 years ago
11

What might cause a change in the value of fiat money

Business
2 answers:
snow_lady [41]3 years ago
8 0
I believe the answer is: <span>a change in government regulations

Fiat money refers to the type of currency that usually do not have intrinsic value, but would suddenly have a value after a certain legislation.

For example, your $ 100 bill does not made from a material that is worth $ 100 in value (unlike gold coin. your dollar bill was made from paper)
But it suddenly have value after the government regulation mandated that it is worth $100 for exchange.</span>
artcher [175]3 years ago
8 0

The value of fiat money is determined by the supply and demand.  It is not supported by a commodity like gold or silver but rather on how much trust is put on it.  If the people begin to doubt the currency then it will lose its value.

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Answer:

restricting the entry; trade restrictions; import tariffs; rent-seeking; monopoly

Explanation:

Monopolists want to maximize their profits by keeping the potential competitors out of the market. For restricting the entry of potential firms they adopt the practice of lobbying for trade restrictions which restrict entry. One such restriction is importing tariff which will reduce competition from foreign products. Such lobbying can be defined as a form of rent-seeking which means using political means to secure monopoly position.

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4 years ago
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Ann [662]

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Explanation:

4 0
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