Populism and Farmers' Movements · US History

Why did many indebted farmers favor inflationary monetary policies such as free silver?

  1. Inflation would automatically make all railroad shipping rates disappear completely and permanently
  2. Inflation would prevent crops from growing
  3. Inflation would make banks stop lending permanently
  4. Inflation could make debts easier to repay and increase prices for farm products
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Correct answer: Inflation could make debts easier to repay and increase prices for farm products

Farmers who owed fixed debts often benefited from inflation because dollars became easier to obtain. Higher prices for crops could also improve farm income.

Difficulty: Medium Question 13 of 20

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