Final answer:
The flood of precious metal from the New World to Europe resulted in a surge in prices known as the Price Revolution and led to the rise of capitalism in Europe.
Step-by-step explanation:
The flood of precious metal from the New World to Europe resulted in a surge in prices known as the Price Revolution. Although the influx of New World silver has often been blamed for rampant inflation, prices had already risen sharply before silver imports reached their peak. However, the use of New World silver by Phillip II of Spain to pay his armies and foreign debts transmitted the rising prices and inflation in Spain to the rest of Europe. The flood of precious metal also led to the rise of capitalism in Europe as gold and silver became the basis of the economic system.