How does the concept of commodity money differ from fiat money, and what are the advantages and disadvantages of each? A) Commodity money is paper currency with no intrinsic value, while fiat money is backed by tangible assets like gold; advantages of commodity money include stability, while disadvantages include limited supply. B) Commodity money is backed by tangible assets like gold, while fiat money has no intrinsic value; advantages of fiat money include flexibility, while disadvantages include the potential for inflation. C) Commodity money is a type of cryptocurrency, while fiat money refers to physical currency. D) Commodity money and fiat money are identical concepts with no differences.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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How does the concept of commodity money differ from fiat money, and what are the advantages and disadvantages of each? A) Commodity money is paper currency with no intrinsic value, while fiat money is backed by tangible assets like gold; advantages of commodity money include stability, while disadvantages include limited supply. B) Commodity money is backed by tangible assets like gold, while fiat money has no intrinsic value; advantages of fiat money include flexibility, while disadvantages include the potential for inflation. C) Commodity money is a type of cryptocurrency, while fiat money refers to physical currency. D) Commodity money and fiat money are identical concepts with no differences.
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