Question

Why did mercantilism in Spain fail to produce the positive benefits seen in England and France?(1 point) Responses Spanish colonies did not produce important raw materials. Spanish colonies did not produce important raw materials. Spanish colonies continued to use the encomienda system rather than chattel slavery. Spanish colonies continued to use the encomienda system rather than chattel slavery. Spain never established colonies in the Americas. Spain never established colonies in the Americas. Spain did not invest the gold and silver it received from its colonies. Spain did not invest the gold and silver it received from its colonies.

Answer 1

The correct response is: **Spain did not invest the gold and silver it received from its colonies.** This statement reflects how the influx of wealth from the colonies led to economic problems in Spain, as much of the gold and silver was used for immediate consumption rather than being reinvested into the economy for growth, leading to inflation and other economic issues. In contrast, England and France were more successful in utilizing their colonial resources for sustained economic development.