Question

Suppose a period of continuous political instability leads people to believe that the economy will slide into a deep recession. As a result, people become more likely to accept __________ money in exchange for goods and services.
A. FlatB. Commodity

Answer 1

Answer:

B) Commodity

Explanation:

A recession is an economic term or period when an economy a decline in economic activities. Is a period where there is low demand for economic goods and services, pile of semi-finished and finished goods, which leads to industries laying off workers ( increased unemployment) and the use deep here emphasize the seriousness, strength, degree of the recession or economic downturn. As a result, people become more likely to accept commodity money in exchange for goods and services, because the fiat money in circulation can no longer stimulate demand, fiat money deficit and the alternative will be for people to exchange the good they have for the one they don't have and that is barter system