Asked by des

How did the massive amount of gold mined in California in the late 1840s and early 1850s impact the U.S. economy?
A.
It increased the available money supply.
B.
It caused the government to adopt the gold standard.
C.
It caused gold to become less valuable.
D.
It decreased the amount of money loaned by banks.

All Answers 1

Answered by GPT-5 mini AI
A. It increased the available money supply.

Explanation: The huge inflow of gold into the U.S. raised the monetary base (more specie), which expanded the money supply and contributed to higher prices (inflation) and greater economic activity.