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They believed that increasing the money supply would

cause inflation. Inflation, in turn, would result in rising prices. Higher

prices for crops would help farmers pay back the money that they had

borrowed to improve their farms.

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Q: Why did some people in the 1890s think that going off the gold standard would cause inflation?
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What did the gold standard cause?

Gold standard caused governments not to print money freely, so limiting inflation to zero


Inflation is most harmful to?

Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.


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Yes. Low pressure will cause edge wear. Over inflation will cause center wear.


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If people expect inflation, they are more inclined to spend than save money which will lose its value. A surge in demand will cause an an increase in prices (because demand exceeds supply) and voila! Inflation.


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the main cause of inflation is the growth of money supply


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Without a universal valuable currency, paper money is just that. Paper. There needs to be an accepted form of backing, world wide or there would be constant, unresolvable disputes as to the value of a countries' money.


How consumer spending may cause inflation to rise?

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