The drop in the buying power of an ounce of gold in sixteenth-century Europe was due to
A) gold being imported from the New World.
B) silver becoming more popular than gold as a medium of exchange.
C) hoarding of gold by the French government.
D) a decline in the purity of the gold being circulated.
E) laws banning the use of gold in commercial transactions.

Question

Quizplus · Accepted Answer

The importation of gold from the New World caused an increase in the supply of gold, leading to a decrease in its value and buying power.

The Drop in the Buying Power of an Ounce of Gold