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polet [3.4K]
2 years ago
11

What was the average Dutch annual income in the 1630s? At the same time, the price of one tulip bulb was approximately how many

times more than the average annual salary? What does this data show about the effects of runaway inflation on an individual's buying power?
History
1 answer:
Tpy6a [65]2 years ago
6 0

Answer:

1. Average annual income of 5000 guilders

2. the rarest tulip bulbs traded for as much as six times the average person's annual salary

3. When a currency's purchasing power decreases due to excessive inflation, serious negative economic consequences arise, including rising costs of goods and services contributing to a high cost of living, as well as high interest rates that affect the global market, and falling credit ratings as a result.

Explanation:

A number of factors contributed to the conditions that caused Tulip Mania. To start, the coin debasement crisis of the 1620s was followed by a period of prosperity in the 1630s. This prosperity coincided with an outbreak of the plague, which caused a labor shortage and increased real wages and surplus income.

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