Question

Which factor led to inflation in the Confederacy?

A. lowered tax rates on materials and goods

B. a surplus of Union supplies and food

C. the rising value of southern assets

D. doubts about the value of its currency

Answer 1

The correct answer would be D) doubts about the value of it’s currency.

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Answer 2

D. doubts about the value of its currency

Step-by-step explanation:

During the war, the Confederacy lacked the money to pay for the expenses and decided to print money. Not only them, but the States followed the same idea, making the inflation go up to 9000%. Even if they had won the war, the Confederacy would most likely colapse economically.