The trend shown was driven primarily by which Confederate fiscal policy?
- A
Heavy reliance on tariff revenues that collapsed under blockade
- Bcheck_circle
Massive printing of paper money to finance the war without an effective tax system
- C
Confiscation of Northern bank deposits in border states
- D
Imposition of a federal income tax that failed to collect revenue
Explanation
Lacking a strong central tax structure, the Confederacy printed enormous quantities of paper currency to fund the war; combined with shortages, this produced runaway hyperinflation.