Question

Which economic difficulties did Philip II and his successors experience? Select all that apply. Profits from the Americas caused growing inflation in Spain. The costs of many wars rapidly emptied the Spanish treasury. Prolonged drought caused major damage to Spanish agriculture. The defeat of the armada severely weakened the Spanish economy.

Answer 1

The answer is: profits from the Americans caused growing inflation in spain,  the costs of many wars rapidly emptied the spanish treasury

The rise in America's economic power cause Spain to lose a lot of market that they previously dominated through trades.

As the profit obtained by the Americans got higher, GDP that Spanish producers able to create keep declining, which cause a growing inflation in Spain. This situation got worsened by the need of high government budget to be allocated to the military.