Explain in detail how the California gold rush contributed to rising prices in the early 1850's
The discovery and mining of gold in California resulted in an increase in the amount of money in circulation. More gold mined led to an increase in the supply of money, which led to higher and higher prices across the country. The earliest and most dramatic inflation occurred near the gold mines. Prices of consumer goods and real estate sky-rocketed in the vicinity of the mines as the gold rush continued.
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Define discrimination. Why does discrimination occur, and what evidence exists that it does occur?
What will be an ideal response?
The interest rate you typically earn on a deposit at a bank:
A. represents the price of your loan. B. represents the risk of investing. C. is the opportunity cost to you of lending money. D. is the opportunity cost to a bank of lending money.
If the government wants to close a GDP gap, it should:
a. borrow funds from the public by issuing bonds. b. lower taxes and raise government spending. c. lower government spending on social security. d. raise both direct and indirect tax rates. e. adopt contractionary fiscal policies to control inflation.
If a developing economy ________ the amount of money its citizens can invest abroad, it has ________ chance of increasing capital formation by forcing its citizens to invest in their own country.
A. restricts; a lesser B. increases; a greater C. restricts; a greater D. restricts; no