Final answer:
The statement is false; during economic boom periods, financial capital is usually more readily available due to increased confidence and lending by financial institutions. This increase in available capital is demonstrated by a rightward shift in the demand for financial capital, like during the late 1990s tech boom.
Step-by-step explanation:
The statement 'During an economic "boom" period, a shortage of low-cost financing alternatives exists' is false. During economic boom periods, banks and the financial sector are typically more eager to lend due to the positive outlook and higher profits that come with economic expansions. An example illustrating this point is the technology boom of the late 1990s. Businesses were highly confident in the potential profits from investments in new technology, and as a result, their demand for financial capital increased. This increased demand shifted the supply-and-demand curve for financial capital to the right, meaning that more capital was available at any given interest rate.
In contrast, during the Great Recession of 2008 and 2009, the financial sector became much more cautious. Banks turned reluctant to lend, resulting in a shift of the demand for financial capital to the left, which meant that borrowing became more difficult and more expensive for potential borrowers. This reluctance to lend can exacerbate an economic downturn, as was seen during this period when the lack of available credit combined with asset price bubbles bursting, leading to a more severe recession.