Between 1880 and 1896, the price level in the United States fell 23 percent. This movement was ______ for bankers of the Northeast and ______ for farmers of the South and West.

Question

Quizplus · Accepted Answer

The falling price level was good for bankers of the Northeast because it increased the buying power of the dollars they lent out, allowing them to charge higher interest rates. However, it was bad for farmers of the South and West because they earned less money for their crops and were often unable to pay off their debts.

Between 1880 and 1896, the Price Level in the United