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Farmers favored inflation because it would

a. increase crop prices.
b. lower the price of manufactured goods.
c. lower the cost of farm machinery.
d. increase their debt.

User Cirrus
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2 Answers

3 votes

Answer:

The answer would be A.

Step-by-step explanation:

User Ronak Shetiya
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7 votes
d- inflation would not increase the farmers debt, but (unless the debt is adjusted for inflation) the debt would decrease - this is not a correct answer.

Inflation is the decrease of the value of money (but the value of objects and services stays the same - it increases with the respect to the value of the money. Because of this neither the manufactured goods nor the farm machinery would be cheaper- but the increase of crop prizes would take place (so answer a), and that's why farmers favour it.
User Ralph John Galindo
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