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Neporo4naja [7]
3 years ago
10

For several decades in the late nineteenth​ century, the price level in the United States declined. Was this likely to have help

ed or hurt U.S. farmers who borrowed money to buy​ land?
Business
1 answer:
AleksandrR [38]3 years ago
6 0

Answer: The correct answer is "Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.  

Explanation: Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.

The farmers who asked for loans had to return the same nominal value that they borrowed (whose real value was higher since the price level decreased) and lowering the price of the products they sold obtained less profit margin.

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