A Significant Effect of the Flood of Silver from the Americas

question 7

Multiple Choice

A significant effect of the flood of silver from the Americas into the European economy was:

• A) a dramatic restructuring of the social hierarchy and new wealth bought titles of the nobility.
• B) a distinct tension between Old World and New World aristocrats.
• C) the promotion of commercial expansion and financing of industrialization.
• D) investing in new university programs in the New World.
• E) Reinvestment in local European farming techniques.

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Definitions:

Quantity Demanded

The aggregate sum of a product or service that buyers are prepared to buy at a determined price point, at a certain moment.

Surplus

The situation in which the quantity of goods produced exceeds the quantity demanded, often leading to a drop in prices.

Supply Increases

Refers to a situation where the quantity of a good or service that producers are willing and able to sell at a given price level rises, often leading to a decrease in prices if demand remains constant.

Equilibrium Price

The cost at which the amount of a product or service being sought after matches the amount being offered, resulting in a stable market.