Question

How did the Bank of the United States influence the economy in 1819?
A) Its high interest rates prevented an overheating of the economy.
B) The bank's low interest rates encouraged borrowing and economic growth in the nation's centers for real estate speculation.
C) Its mandate to pay of the nation's debt meant that it had a deflationary and depressing effect on the economy.
D) Its generous issue of notes made it hard for the bank to withstand runs, further spreading the economic depression.

Answer

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