Question

(hc)
the passage below is an excerpt from the populist party platform of 1892
we demand free and unlimited coinage of silver and gold at the present legal ratio of 16 to 1. we demand that the amount of circulating medium be speedily increased to not less than $50 per capita
source: http://www wwnorton com/college/history/eamerica/media/ch22/resources/documents/populist.htm
how would the acceptance of these demands help the supporters of the populist party?
○ a coining more money would lead to inflation, which would increase wages for factory workers.
○ b speeding up the circulation of money would raise interest rates, which would make banks less profitable.
○ c increasing the money supply would raise crop prices, making it easier for farmers to pay their debts and make profits.
○ d the use of both silver and gold as coins would enlarge the federal budget, making it possible to pay for more welfare programs for the poor.

Explanation:

The Populist Party was mainly supported by farmers. Increasing the money - supply (through free and unlimited coinage and raising the per - capita circulation) would cause inflation. Inflation would raise crop prices, which would benefit farmers by making it easier to pay off debts and make profits. Option a is wrong as the Populists were mainly farmers not factory workers. Option b is incorrect as speeding up money circulation and raising interest rates is not the main benefit for Populist supporters. Option d is wrong because using silver and gold as coins doesn't directly enlarge the federal budget for welfare programs.

Answer:

C. Increasing the money supply would raise crop prices, making it easier for farmers to pay their debts and make profits