Answer:
False
Explanation:
Commodity money is money whose value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves (intrinsic value) as well as their value in buying goods.
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value.
When there are a shortage of loanable funds and the interest rate rises, the quantity required exceeds the amount supplied, and the interest rate rises.
<h3>What happens if the interest rate in the economy rises?</h3>
Businesses and individuals will cut down on spending as interest rates rise. Earnings will suffer as a result, as will stock values. Consumers and corporations, on the other hand, will boost spending when interest rates have decreased dramatically, leading stock values to climb.
The availability of loanable funds indicates that as the interest rate rises, the amount of savings accessible will rise as well.
As a result, anytime interest rates rise, the economy will see a sudden and unexpected surge in borrowing costs.
Learn more about interest rates:
brainly.com/question/4424897
#SPJ1
Answer:
Me encantaría ayudar pero mi español es muy limitado.
Explanation:
lo siento
Answer:
reduced economic activity and increased government borrowing
Explanation:
Expansionary fiscal policy increases the level of aggregate demand, through either increases in government spending or reductions in tax rates. Expansionary policy can do this by (1) increasing consumption by raising disposable income through cuts in personal income taxes or payroll taxes; (2) increasing investment spending by raising after-tax profits through cuts in business taxes; and (3) increasing government purchases through increased federal government spending on final goods and services and raising federal grants to state and local governments to increase their expenditures on final goods and services.
