Question

Did Congress printing millions of dollars worth of paper money with little gold and silver backing cause a drop in the price of goods in the colonies? (True/False)

Answer 1

Yes, the printing of Continental currency by Congress during the American Revolutionary War caused a drop in the price of goods in the colonies.

Step-by-step explanation:

Yes, the printing of millions of dollars worth of paper money with little gold and silver backing by Congress caused a drop in the price of goods in the colonies. During the American Revolutionary War, the Continental Congress printed a significant amount of paper money called Continental currency. As a result of the excessive printing, inflation became rampant, and the value of the Continental dollar depreciated rapidly. This led to a significant increase in the price of goods, making them more expensive for the colonists to purchase.