After the Civil War, the United States government moved the economy back to the
ID: 1199255 • Letter: A
Question
After the Civil War, the United States government moved the economy back to the gold standard, meaning that dollars could be redeemed for gold. As a result of the gold standard, the supply of dollars in the U.S. was determined by the supply of available gold. Since gold is a relatively rare metal, this meant that the supply of dollars in the post-Civil War period was limited. The major consequence of the gold standard was frequent periods of deflation. For farmers and workers in the U.S., the gold standard and the resulting deflation caused tremendous hardships. In the late-19th century, “Silverites” advocated a silver standard, which would have increased the supply of dollars in the economy and caused inflation. Which of the answer choices best explains why Silverites disliked deflation and wanted a silver standard for the U.S.?
Deflation caused farmers and workers to receive less for what they produced and so made it harder to pay off debts whose values decreased as prices increased.
Deflation caused farmers and workers to receive more for what they produced and so made it easier to pay off debts whose values decreased as prices increased.
Deflation caused farmers and workers to receive less for what they produced and so made it harder to pay off debts whose values increased as prices decreased.
Deflation caused farmers and workers to receive more for what they produced and so made it easier to pay off debts whose values increased as prices decreased.
A.Deflation caused farmers and workers to receive less for what they produced and so made it harder to pay off debts whose values decreased as prices increased.
B.Deflation caused farmers and workers to receive more for what they produced and so made it easier to pay off debts whose values decreased as prices increased.
C.Deflation caused farmers and workers to receive less for what they produced and so made it harder to pay off debts whose values increased as prices decreased.
D.Deflation caused farmers and workers to receive more for what they produced and so made it easier to pay off debts whose values increased as prices decreased.
Explanation / Answer
Deflation caused farmers and workers to receive less for what they are produces and so amde it ahrder to pay off debts whose values increased as prices decreased.