In 1898,prospectors on the Klondike River discovered gold.This discovery caused an unexpected price level
A)decrease that benefited creditors at the expense of debtors.
B)decrease that benefited debtors at the expense of creditors.
C)increase that benefited creditors at the expense of debtors.
D)increase that benefited debtors at the expense of creditors.

Question

Quizplus · Accepted Answer

The discovery of gold on the Klondike River led to an increase in price levels. This benefited debtors as the value of their assets, including gold, increased. At the same time, this was at the expense of creditors who had to accept repayment in dollars that were now worth less due to inflation.

In 1898,prospectors on the Klondike River Discovered Gold