Question

As the Spanish established American colonies, they sent silver and gold mined in the Americas to Spain. Spain, like many other European countries of the time, believed that a country's wealth depended on how much silver and gold it owned. This is an example of which type of economic system? A. Capitalism B. Mercantilism C. Isolationism D. Nationalism

Answer 1

Answer:

B. Mercantilism .

Explanation:

In the mercantilist view, countries try to increase their wealth at the expense of other countries. It is built upon a notion that wealth is static. Countries should try to increase their exports and reduce their imports and their current account deficits. They should accumulate large monetary reserves, gold and silver, according to mercantilism.