WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
GILDED AGE POLITICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It had not effect on farmers
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It increased the money supply for farmers, making the payment of bills easier
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It decreased the money supply for farmers, making the payment of bill harder
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Farmers did not have to borrow as much money to function
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Detailed explanation-1: -Farmers sought inflation of the money supply so that more money would be available to them for credit, prices for their crops would rise, and debts would become easier to repay.
Detailed explanation-2: -Farmers believed that interest rates were too high because of monopolistic lenders, and the money supply was inadequate, producing deflation. A falling price level increased the real burden of debt, as farmers repaid loans with dollars worth significantly more than those they had borrowed.
Detailed explanation-3: -The challenges that many American farmers faced in the last quarter of the nineteenth century were significant. They contended with economic hardships born out of rapidly declining farm prices, prohibitively high tariffs on items they needed to purchase, and foreign competition.
Detailed explanation-4: -Many attributed their problems to discriminatory railroad rates, monopoly prices charged for farm machinery and fertilizer, an oppressively high tariff, an unfair tax structure, an inflexible banking system, political corruption, corporations that bought up huge tracks of land.