Gold Standard and Bimetallism · US History

Why did farmers prefer inflationary policies like bimetallism?

  1. To reduce crop production
  2. To significantly increase interest rates on loans
  3. To reduce wages
  4. To make debts easier to repay
Show answer and explanation

Correct answer: To make debts easier to repay

Inflation raises prices for crops and reduces the real value of debts. This benefits farmers who often borrowed money.

Difficulty: Medium Question 16 of 20

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