4
QuizMultiple Choice

The Populist Party

Question 4 • TX-US History Studies Since 1877 A

In the late 1800s, why did industrialists support the gold standard?

Answer
T
The gold standard kept the price of gold flexible, which made the value of currency go up and down.
T
The gold standard kept the price of gold fixed, which kept both prices and wages down.
T
The gold standard kept the price of gold fixed, which caused wages to steadily increase.
T
The gold standard kept the price of gold flexible, which also made the price of silver flexible.

Explanation

Under the gold standard, currency could be exchanged for a fixed amount of gold, limiting the money supply. This tended to restrain inflation and keep prices—and the wages industrialists paid—down. Therefore, industrialists generally supported the fixed-gold-price policy described in choice B.

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