Though the Gilded Age was a prosperous time during which the United States became the largest economy in the world, two economic panics occurred during the period in:
Explanation
Answer: C - Two economic panics occurred during the otherwise prosperous Gilded Age-the Panic of 1873 and the Panic of 1893. The Panic of 1873 was caused, in part, by an over-investment in the railroad and construction industries. Too much was built too fast, and a lot of capital was invested in projects that promised their investors minimal short-term returns, without real long-term value. A sharp decrease in the international demand for silver also precipitated the crisis. The panic caused a depression that lasted until 1879. The Panic of 1893 was also instigated by an over-investment in the railroad industry. As banks began to collapse due to railroad defaults, there were runs on the banks, which caused the financial market to collapse as well. The ensuing depression lasted for four years.
